ANNUAL REPORT 2013 World Vision UK Trustees’ Report and Accounts for the Year Ended 30 September 2013

ANNUAL REPORT 2013 World Vision UK Trustees’ report and accounts for the year ended 30 September 2013

EVERY CHILD FREE FROM FEAR OUR VISION oUR ACTIVITY Our vision for every child, life in all its fullness; World Vision is the world’s largest international children’s Our prayer for every heart, the will to make it so. charity, working to bring real hope to millions of children in the world’s hardest places. And we do it all as a sign of OUR MISSION God’s unconditional love. To inspire the UK to take action that Poverty, conflict and disaster leave millions of children living transforms the lives of the world’s in fear. Fear of hunger and disease. Fear of violence, conflict poorest children. and exploitation. Fear that robs them of a childhood. OUR GOAL Our local staff work in thousands of communities across the world. They know the names and stories of each child To be transforming the lives of eight million they help to support – children like Jouri and George, children around the world with the help whose stories you can read on pages 3 and 14 of this of 500,000 supporters in the UK. report. They live and work alongside these children, their OUR VALUES families and communities to help change the world they live in for good. The core values that guide our behaviour are: Our worldwide presence means we’re quick to respond to

●● We are Christian ●● We are stewards emergencies like conflict and natural disasters. We also use ●● We are committed ●● We are partners our influence and global reach to ensure that children are to the poor ●● We are responsive represented at every level of decision-making. ●● We value people World Vision UK is part of the World Vision Partnership, which works in close to 100 countries.

As a charity, World Vision UK’s activities must be carried out for the public benefit. This report outlines specific activities – based on our 2011/15 strategy – which were undertaken for this purpose during the financial year ended 30 September 2013 under four priorities:

●● Evidence of real change for children ●● A transformed supporter experience ●● Growing our income and influence ●● Being an inspiring and effective organisation.

This page: Women return home with water pulled from a nearby ‘berkat’ built by World Vision in Somalia. © 2012 Ashley Jonathan Clements/World Vision Front cover: Sedra, 7, (pictured right) in a refugee camp in Jordan where she and her six siblings now live. © 2013 Jon Warren/World Vision CONTENTS FROM THE CHAIR AND CHIEF CORPORATE STRUCTURE AND EXECUTIVE 2 GOVERNANCE 41

STORIES OF HOPE 4 FINANCIAL STATEMENTS FIVE-YEAR FINANCES 6 STATEMENT OF FINANCIAL ACTIVITIES 46 OUR FINANCES AT A GLANCE 7 BALANCE SHEET 47 WHERE WORLD VISION WORKS 8 STATEMENT OF CASH FLOW 48

STRATEGIC REPORT ANALYSIS OF NET FUNDS 49

Priorities NOTES TO THE ACCOUNTS 50

PRIORITY ONE

EVIDENCE OF REAL CHANGE INDEPENDENT FOR CHILDREN 12 AUDITOR’S REPORT 63 BIOGRAPHIES OF TRUSTEES 64 PRIORITY TWO TRUSTEES, PRINCIPAL OFFICERS A TRANSFORMED SUPPORTER EXPERIENCE 22 AND ADVISERS 66 THANK YOU 67 PRIORITY THREE BIBLIOGRAPHY 67 GROWING OUR INCOME AND INFLUENCE 26 GET INVOLVED 68 PRIORITY FOUR

BEING AN INSPIRING AND EFFECTIVE ORGANISATION 32

STRATEGY AND PLANS FOR THE FUTURE 34

FINANCIAL REVIEW 36 Closer to home, there have been achievements and FROM THE CHAIR AND challenges. Our partnership with and support from the UK CHIEF EXECUTIVE government has continued to grow. We are bringing children and their sponsors closer together through richer, digital communications. Like all UK charities though It’s been a year of incredible impact and one of real World Vision is finding it harder to attract new supporters. challenge. The pages of this report bring to life vividly the It’s a tough, competitive fundraising environment and 2013 scale, scope and depth of this for the 3.9 million children saw our income dip for the first time in over five years. and almost seven million people whose lives World Vision We’ve had to make further organisational and financial UK has touched across the world in 2013. changes to ensure we can sustain and grow our impact for Two unforgettable days in 2013 illustrate the joys and children in the long term. We give thanks for our highly sorrows that we can face in World Vision. committed, talented staff through this.

The first one – a bright summer’s day in June when Rose, a This year also saw Typhoon Haiyan, the world’s biggest ever frontline World Vision health worker from Kenya, spoke storm. Amidst the devastation we thank God that the powerfully to world leaders at a summit which resulted in deaths were so much fewer than they could have been – governments and companies pledging £2.7 billion to fight a tribute to the incredible resilience of the Filipino people malnutrition. Across London, World Vision friends and and the impact of strong disaster preparedness. The supporters raised their voices amidst the 45,000 gathered generosity of our supporters and the UK public as in Hyde Park for the culmination of the Enough Food for World Vision and the UK’s other leading agencies came Everyone IF campaign. This was a day that will make a life together in this 50th year of the Disasters Emergency changing difference to millions of children who may now be Committee (DEC) was overwhelming. Thank you to all our able to grow up without the fear of hunger. supporters and partners that are such an inspiration to us at World Vision and who have made such a transforming The other – a chilly September evening in a tiny refugee difference in the lives of so many children. tent in Lebanon, just a few miles from the Syrian border. Meeting Tasnim, just eight years old, was the year’s most Justin Byworth Mark Sheard harrowing encounter. “Death. Bombs every day. Fear. No Chief Executive Board Chair food, no bread. We barely ate. We moved from place to place to stay alive. I saw little children dead, people crying everywhere. That night I saw death.” Justin meets Syrian refugees Ziad and baby Tasnim and her mother told us how they survived hunger, Qassen in Lebanon. bombing and the chemical weapons attack that massacred hundreds in Damascus. She is just one of the seven million Syrians who’ve fled their homes from a conflict that has taken more than 100,000 lives and one which, as we strive © 2013 Patrica Mouamar/World Vision to bring relief and advocate for peace and protection for In Myanmar, Mark meets Syria’s children, has affected us deeply. a child supported by World Vision. These two days illustrate the brokenness that still confronts our world but also the hope that is at our heart – that one day every child can live life to the full. Free from fear. Able to grow up loved and protected, healthy and educated. Able to fulfill their God-given potential. © World Vision

Just like Tasnim (pictured above, second right), Jouri (main picture), 8, felt fear as she sheltered from bombs in Syria. A talented student, one of Jouri’s biggest sadnesses about leaving Syria for Lebanon was leaving school behind. Now Jouri has a place in a World Vision education project and says: “Coming here is the best thing that happened to me since we [left Syria]”.

We continue to work in Lebanon, to help stop children like Tasnim and Jouri becoming part of a lost generation - providing them with education opportunities and safe places. Find out more on page 15.

World Vision Annual report and accounts 2013 53 HOPE FROM CAMBODIA

“I didn’t want to do the job but we “I was a virgin. The price to sell that is high. I felt scared didn’t have a choice. No one could and felt so much pain. I started taking two to three come to help me.” clients every day. When I felt pain in my body, I asked the other girls to serve on my behalf.

“Then the police caught us all. I met a woman from At just 17 years of age, Srey*, from Cambodia, became a World Vision, who asked if I’d like to come to a prostitute. After her father fell gravely ill and the family Recovery Centre. fell into serious debt covering his medical expenses, Srey felt she had no choice but to enter prostitution to help “[At the Centre] they’re kind and tell me it’s okay. her family pay off their ever increasing debts. [They] ask me what will I do when I leave. I say: ‘I will use the skills [learnt there] to earn a living and not do the Here Srey shares how the pain and fear she felt while same thing again.’ working as a prostitute turned to hope with support from World Vision staff: “Before I didn’t have a dream… but now I’m living at a Centre I’ve got a dream of what I want to do. I’m so “I didn’t know if the men I was servicing would hurt me. thankful and appreciative of all the work they’ve done My only purpose was to work and get money so that for me.” my Dad could get better. I didn’t want to do the job but we didn’t have a choice. No one could come to help me. *To protect her identity, Srey is an assumed name. © 2013 Sopheak Kong/World Vision

World Vision 6 2013 Annual report and accounts HOPE FROM NIGER STORIES OF HOPE

“I dropped out of school because my At the Centre, Charifa has learned to sew and has parents did not have money. Now I progressed so well that she now teaches other children am in training school learning to sewing skills. Soon Charifa plans to sell the clothes she sew clothes.” makes too. Full of confidence, Charifa has also taken on the role of a Charifa,15, is a World Vision sponsored child. She lives World Vision child reporter, developing even more new with her parents, two sisters and three brothers in a skills. As a reporter, she lets supporters who sponsor rural region in east Niger. Until recently Charifa was children in her village know about the latest studying at school, but her parents, both unable to find developments implemented by World Vision. In one of work, struggled to pay her fees. Eventually, the struggle her recent reports, Charifa shared news of a water was too much for Charifa’s parents and she had to stop tower that has been built: going to school. “Before women and girls used to go to the river. We Like many other girls in the region, Charifa feared that used to struggle. Now with the water tower we are less after dropping out of school she would be married off tired. Also, the fence that was put in place made us feel while still just in her teens. Thankfully, World Vision safer. It keeps away animals and intruders so we can prevented this happening, offering Charifa a placement at come and go as we please.” a vocational training centre that they run. © 2013 Mariana Chokaa/World© 2013 Mariana Vision

World Vision Annual report and accounts 2013 7 FIVE-YEAR FINANCES

2009 2010 2011 2012 2013 £’000 £’000 £’000 £’000 £’000

Committed giving and other donations 38,971 40,274 39,613 41,881 38,897 Donations for emergencies 2,259 5,041 4,867 3,732 1,651 Donations, gifts and legacies 41,230 45,315 44,480 45,613 40,548 Institutional grants 10,447 10,691 19,019 21,057 21,917 Donated goods and services 6,580 4,861 4,363 2,040 4,196 Voluntary income 58,257 60,867 67,862 68,710 66,661 Investment and other income 223 120 63 79 81 Total income 58,480 60,987 67,925 68,789 66,742

Costs of generating funds 10,245 9,707 10,517 10,959 10,522 Charitable activities 48,687 49,810 56,344 57,192 59,446 Governance costs 231 404 481 513 454 Total expenditure 59,163 59,921 67,342 68,664 70,422

Net (outgoing) / incoming resources (683) 1,066 583 125 (3,680) before investment gains

Investment gains / (losses) 67 92 (15) 98 103 Net movement in funds (616) 1,158 568 223 (3,577)

The funds of the charity

Restricted and designated funds 10,523 9,714 12,497 11,891 8,615 General fund 5,649 7,616 5,401 6,230 5,929 Total funds 16,172 17,330 17,898 18,121 14,544

5 Year Average Ratios Percentage of total expenditure: Costs of generating funds 16.0% 17.3% 16.2% 15.6% 16.0% 14.9% Charitable activities 83.4% 82.3% 83.1% 83.7% 83.3% 84.4% Governance costs 0.6% 0.4% 0.7% 0.7% 0.7% 0.6%

Free reserves (1) Number of days’ expenditure (2) 39 days 50 days 31 days 34 days 33 days 1 Free reserves comprise the General fund. 2 Number of days’ expenditure excludes donated goods and services as these do not involve a cash flow. World Vision 8 2013 Annual report and accounts OUR FINANCES AT FIVE-YEAR FINANCES A GLANCE The charts below show how the funds we raised during 2013 were sourced and spent on projects to benefit children and communities around the world. how we raised the money How each £ is spent

Gift aid 10% Governance 1% Child Legacies 1% sponsorship 37% Cost of Other generating Charitable donations 10% funds 15% activities 84% Emergencies 2%

Institutional grants 33% Donated goods and service 6%

our impact on children Last year we reached 3,900,000 children with our life-changing work. projects we funded this year 429,987

Other 14% Health 36% children have benefited from our Livelihoods 20% child protection work 1,459,040 children have benefited from our Emergency health programmes response 5% Protection 4% Education 16% Community empowerment 5% 690,752

children have benefited from our humanitarian work

World Vision Annual report and accounts 2013 9 WHERE WORLD VISION WORKS

EVERY CHILD FREE FROM FEAR ENABLING LONG-TERM CHANGE Transforming the lives of children lies at the heart of World Vision. Not only because it is children who suffer Lasting change requires sustained commitment. That’s why most from poverty, conflict and disaster, but because by we focus on long-term projects called Area Development working with children we know we can bring about Programmes (ADPs), where we work with communities in lasting change. By banishing fear and bringing real hope one area for 12-15 years. Projects include ensuring children to millions of children growing up in the world’s hardest are protected, healthy and in school, helping families secure places, we can help them shape a better future for better livelihoods, and enabling communities to withstand themselves for good. We achieve this by enabling long- and bounce back from conflict and natural disasters. By the term change, giving children a voice and responding to time we move on, communities are equipped and continue emergencies. to develop their own way out of poverty. For a great example of one of our communities that has done just this, World Vision works with communities, partners and turn to page 20. governments in close to 100 countries across the world.

World Vision UK Programmes In 2013, World Vision UK funded development and emergency programmes and projects in 35 of the countries where World Vision works.

After floods in Cambodia, World Vision helped community farmers become resilient to future flooding. Now, Ponlok, 12, is able to harvest and benefit from crops that her mother has grown.

Following the earthquake and tsunami that hit the Solomon Islands in 2013, children like Ashlea (left) were helped to overcome the trauma associated with the emergency at World Vision Child Friendly Spaces.

GIVING CHILDREN A VOICE RESPONDING TO EMERGENCIES

Children have a right to be heard and to have a say in the Conflict and natural disasters affect more than 250 million issues and decisions that affect them and their communities. people around the world each year, hitting children the We speak up for children and give them a voice – we call hardest. With 46,000 staff based in nearly 100 countries, this advocacy. By using our influence and global reach, we World Vision is quick to step in when disaster strikes. make sure that children are represented at every level of Within hours, we are on the ground providing essentials decision-making, from community meetings to international like food, water and shelter, and creating safe zones for summits. And by educating children about their rights, we vulnerable children. And we stay to help communities help them to speak up for themselves. In 2013, children in recover long after the eyes of the world have moved on. 11 of our projects became reporters, expressing Find out more about the children and communities caught themselves freely and telling stories of their lives and up in emergencies we responded to on pages 15 to 17. communities - see page 23 for details.

Children fetch clean drinking water from a World Vision water project in Ethiopia.

World Vision 12 2013 Annual report and accounts STRATEGIC REPORT During the financial year ending 30 September 2013 our activities have focused on our four priorities, as listed below. This section details the progress we have made against them, and also provides information about our strategy and plans for the future, as well as a financial review. PRIORITY EVIDENCE OF REAL CHANGE FOR CHILDREN

A TRANSFORMED SUPPORTER EXPERIENCE 2PRIORITY PRIORITY GROWING OUR INCOME AND INFLUENCE 3 PRIORITY AN INSPIRING AND EFFECTIVE ORGANISATION 4 World Vision Annual report and accounts 2013 13 PRIORITY

EVIDENCE OF REAL CHANGE FOR CHILDREN Children living in the poorest and most fragile countries enjoy good health, are protected and are resilient to disasters.

The challenge

Despite the huge progress World Vision and others Francis, 4, have helped bring over the last few decades – including Aminata, 7, and improved access to education and reductions in child Mohammed, mortality – many people in the world continue to be 6, in Sierra Leone. left behind. In particular, those living in places hit by conflict, natural disasters and political upheaval are often cut off from the support and the structures that can help them rise out of poverty.

Without further action, children across the world will continue to go to bed hungry, continue to work instead of going to school, continue to endure poor health and growing inequality. © 2013 Abby Stalsbroten/World Vision

WHAT WE AIM TO DO BY 2015

When we launched our current five-year strategy in child marriage, child labour and supporting children 2011, we aimed to be transforming the lives of eight affected by war and conflict. million children by 2015. It’s now clear that, because of And to reinforce this work, we will continue to the economic crisis, this will take a few years longer measure our impact on children and their communities. than we expected. Ensuring this is measured in the best way and reported We will continue to work in the world’s poorest, most on transparently will be paramount. By doing this, we fragile places, concentrating on child protection, child remain accountable to our supporters, partners and health and humanitarian action – enabling millions of the people we serve. This not only helps us gain further children to grow up healthy, hopeful and free from fear. support, but it, most importantly, helps us see what In 2012, we decided to make protecting children our we’re doing well and where we could do better, lead theme, so we’ll increasingly address issues such as maximising our resources and services to the field.

World Vision 14 2013 Annual report and accounts WHAT WE’VE ACHIEVED where they could get help if they needed it. Interviewed EVIDENCE OF REAL CHANGE FOR CHILDREN children gave several examples of how they use new tactics THIS YEAR to avoid risky situations and how they helped other children learn about their rights. The Department of Social Affairs has reported that increasing numbers of child WE’VE HELPED MAKE 429, 987 protection cases are being reported. In Albania, we’ve run CHILDREN SAFER camps, theatre performances and training sessions to help 499 children understand their own rights, as well as those of other children. Every day millions of children face fears that are as terrible as they are real. Of having to Free from early marriage: Shockingly around the work in a dangerous job to support their world, 1 in 9 girls marry before they turn 15. To help family. Of being forced into marriage or facing address this we’ve worked with communities, sharing the an abusive husband. Of being taken from their home and negative effects that marrying young can cause, and we’re made to carry a gun, or sold into prostitution. Of having seeing results. Incidents of early marriage have been their home and security destroyed by conflict and natural reduced in 23 communities in Malawi – in six months, local disaster. In 26 projects across 17 countries this year, we child protection committees released eight girls aged 13-15 challenged practices and attitudes that harm children, from forced marriages. promoted children’s rights and strengthened systems for Free from harmful work: Likewise, we have also been protecting them, so that more children will be able to enjoy working to reduce the number of children forced to work. a childhood free from these fears. In the brick factories of Battambang and Sangke, Cambodia, Free from violence: In Somalia, South Sudan, Armenia child labour is down 59 percent: many of those children are and Albania, we’ve helped establish child support and now back in school, instead of in a hazardous job. protection committees. We’ve trained them to help spot Awareness of child labour laws has also increased among children at risk, and to prevent and report threats. In the employers and communities. places where we work we’re seeing less violence against children, safer schools, better parenting and more Srey, from Cambodia, was understanding of children’s rights – particularly among forced into children themselves. prositution at age just 17. Turn to Free to speak out: Following five years of work in page 4 to find out how World Vision Lezha, Albania, for example, more than one in five people helped her recover surveyed said child protection had improved significantly from the associated trauma. and almost everyone believed children were now more empowered to talk about child protection issues. In Awdal, Somalia, 10 child support committees that we helped set © 2013 Sopheak Kong/World Vision up reported 353 incidents of children at risk.

Free to learn about their rights: Protecting children is often about helping them to protect themselves – and to teach each other to do so, which we encourage through peer education programmes. In eastern DR Congo, we trained 130 vulnerable children, including survivors of sexual violence and child soldiers, to know their rights and

A child soldier speaks

George was 15 when he was taken from his family in Back in Uganda, George found protection, support and Uganda by the Lord’s Resistance Army. Systematically hope for a new life at the World Vision Children of brutalised, George was ordered to kill – be it soldiers War Centre. or little children – or face death himself. He also raped “My stay at the rehabilitation Centre helped me a lot. and poached. His life of horror continued for 12 years, Through counselling I accepted that what happened to until George escaped and was helped to come to me was not my fault and that I needed to focus more terms with his experiences at the World Vision Children on the future than in the past.” of War Centre. George was welcomed home by his family and village. Here George, now 27, describes what happened after Of his emotional return George said: his abduction: “I never knew I was loved this much. I will never, never, “First they take you into the jungle and demonstrate never go back to the bush. I want to honour my parents how a gun operates. When you are perfect, they take and work hard. I want to say thank you to World Vision you for real fighting. and for this Centre. I want to have a business now, “The first time I went…we were shooting soldiers. We maybe be a farmer and raise chickens and crops.” killed so many. You shoot randomly and only at the end World Vision’s Children of War Centre in Uganda has see…people lined up dead. I was told to kill…children helped many child soldiers overcome the trauma and who tried to escape. I did this because I had to. guilt associated with their brutalisation by rebel armies “I saw so much in the bush. I can’t begin to say what I in places of extreme conflict and lawlessness. The saw – it was too much. I didn’t want to come home Centre gave them emotional and practical support to [but] I escaped. I was very scared [and] ran as fast as move forward and rebuild their lives, supporting 14,000 I could.” children and young people.

World Vision 16 2013 Annual report and accounts fear and loss, and without an education. What we are EVIDENCE OF REAL CHANGE FOR CHILDREN WE’VE SUPPORTED facing is the loss of a generation of Syria’s children and 690,752 CHILDREN HIT BY young people. HUMANITARIAN EMERGENCIES In the face of the worst humanitarian crisis of the 21st Wars and natural disasters are terrifying and century, we’ve launched a massive response, working traumatic experiences for children. We’re together with other agencies to reach as many people as always one of the first organisations to possible. We’ve provided essentials like food vouchers, respond to humanitarian emergencies heaters, blankets and hygiene kits to help people stay fed, bringing essential life-saving support but also, and just as warm and well. And we’ve made a special effort to ease importantly, ensuring children are protected and safe, that the fear and suffering children face, setting up safe spaces they can feel free from the fear that can so easily impact where they could continue their education, talk to negatively on the rest of their lives. counsellors and play together.

In 2013, with our partners we were able to support a total Syria: the world’s worst refugee crisis: In town of 297,248 people – 34,876 refugees in Jordan, 192,372 after town across Syria, children have seen their lives blown refugees in Lebanon and 70,000 people displaced in Syria. apart. Over six million Syrians have fled their homes in fear, trying to escape a conflict that has claimed more than 100,000 lives, including 11,000 children. Over two million economic times, a joint – half of them children – have sought refuge across the appeal helped us reach as border in Lebanon, Jordan, Turkey or Iraq. The human cost We were thankful for the many people as possible in for each and every child is almost indescribable, as they launch of the DEC’s Syria this complex and long-term Crisis Appeal. In tough emergency. grow up scarred by the experience of unbearable violence, ©2013 Ralph Baydoun/World Vision

In a camp for refugees from Syria in Lebanon, World Vision helps Jomaa, 12, and his brother and sister find education, rather than work with their parents stacking concrete bricks.

World Vision Annual report and accounts 2013 17 Freeing children from fear in DR Congo: Children We’ve sought to bring some hope and stability to these in DR Congo have grown up haunted by war. Although civil children’s lives. Working with UNICEF, we supported war officially ended 10 years ago, the spectre of violence 13,742 displaced children in DR Congo and have provided has never gone away. Many children have never known the safe spaces, with opportunities to learn and have fun. security of a permanent home: around three million people We’ve also helped strengthen child wellbeing committees remain displaced by the to make sure children are fighting, with around 460,000 “I will never forget the sounds of shooting, the feel of looked after. We provided fear and uncertainty – feelings that so many living as refugees in psychological support for Congolese people must live with every day.” neighbouring Uganda. Though children who have been the country is vastly rich in World Vision UK staff member Richard Dove, working near through traumatic natural resources, it remains the DR Congo border when fighting resumed in 2013. experiences, seeing people crippled by poverty and they knew being killed or corruption, hunger and ill health. Last year, fresh fighting raped. With partners, we’ve also worked to keep children broke out between the M23 militia and government forces, and their families together and reunite those who have and rebel groups unleashed a new campaign of violence become separated. and terror. Tens of thousands of families fled in panic, taking We’re praying that the latest ceasefire in DR Congo will only what they could carry. Despite a new peace deal, hold, but we won’t be leaving any time soon. We’ll continue many have yet to return. to support these children in the years ahead as they seek to lead the country into a better future. ©2013 Kayla Robertson/World ©2013 Kayla Robertson/World Vision

Separated from her family, Muombi, 15, from DR Congo, lives in a camp in Goma for displaced people fleeing the country’s conflict. World Vision provides Muombi, and around 200 other children without family protection, with essential food and support.

World Vision 18 2013 Annual report and accounts Our other humanitarian work this EVIDENCE OF REAL CHANGE FOR CHILDREN year included: WE’VE HELPED MAKE 1,459,040 CHILDREN HEALTHIER • Treating 244,588 children in Angola (with support from the European Community Humanitarian Office) and Since 1990, the number of children dying 10,613 children in Niger for acute malnutrition before they reach five has more than halved during severe food shortages. – from 12.6 million to 6.6 million1.. That’s an • Providing extra food to 7,355 children at risk of amazing achievement, and we’re proud to undernutrition and setting up lessons for 6,000 children have played a part in it. But with more than three million who couldn’t get to school after flooding in Malawi. We children, aged under five, still dying each year because of also helped 886 households affected by flooding get undernutrition, millions more suffering from its effects, and their lives back together by setting up irrigation schemes at least an estimated 165 million suffering from stunting and and improving access to clean water and sanitation. 52 million from wasting2., we still have a long way to go. We aim to change this, working where we can to make the • Supporting 3,320 people affected by the earthquake biggest difference: with women and children in their homes and tsunami in the Solomon Islands, providing 435 and communities, especially in the fragile states and households with access to safe water, 300 households hard-to-reach places where the effects of poor nutrition with shelter kits and 268 households with essential and ill health are most severe and most feared. domestic items.

Recovery and resilience: Our work doesn’t end when the immediate emergency is over. We spent two years In Honduras, Ana, 6, plays on a rope swing, happy she has a home to return to, thanks to a World Vision housing project in her village. helping communities in East Africa recover from the devastating drought of 2011. Our legacy: 17,000 people in Ethiopia and 17,000 in Kenya now have clean water for the first time; 24,000 people in Somaliland have a better water supply; 300 displaced families in Somalia now have their own house; and 900 have latrines for the first time. In West Africa, where in 2012 we helped stop the region’s food crisis becoming a catastrophe, we’ve continued to work in Mali and Senegal to make people more secure: enabling 78,844 people in Senegal to grow their own crops rather than labour in the fields of others. And in Honduras, Mozambique, DR Congo, Malawi and Zambia we’re working with vulnerable communities so that they will be ©2013 Jon Warren/World Jon Vision ©2013 better able to cope with the risks of climate change, natural disasters and conflict.

World Vision Annual report and accounts 2013 19 Nutrition: Some children will never fully recover from families are putting malaria nets round their beds. In India, the devastating effects of undernutrition. Undernutrition Sierra Leone and Zimbabwe, projects are seeing can affect a child’s mental as well as physical development improvements, ranging from 15% to 25%, in the use of salt and prevent them from living life to the full. That’s why child and sugar to help prevent children with diarrhoea nutrition is one of our top global priorities, focusing becoming dehydrated – a simple, low-cost treatment that especially on pregnant women, mothers and children aged can save millions of lives. under two – as these crucial early years can make all the Community action: We’re strengthening community difference to children’s long-term development. One health systems, where basic improvements – like increased country where we’ve seen good progress is India, where immunisation coverage and better access to skilled birth undernutrition is more common than in sub-Saharan Africa. attendants – make a huge difference. Often, this is about Here, the proportion of undernourished children has fallen educating and training people to take advantage of the by almost 10 percent in the areas where we work and is support available. In Afghanistan, for example, 14 now below the national average. And in our project site in communities have established small savings groups to help Sierra Leone, the proportion of under fives, who are people access health services for mothers and newborns. underweight for their age, fell from 17.8% to 14.7%. Across 28 communities in Kenya, 160 community health Family health: We’re supporting families to free workers have worked to strengthen health referral systems, themselves from the fear of life-threatening diseases by with 10 communities referring 1,501 mothers and young . taking simple steps to prevent and control them – like children in the first half of the year. promoting breastfeeding, malaria nets, vaccinations and We also supported 66. communities to call governments to household treatments for diarrhoea and fever. We’ve seen account when health services aren’t resourced sufficiently measurable improvements over the last year in at least 83 and to develop their own strategies for improving communities. In projects in Sierra Leone, 20 percent more community health. ©2013 Jennalise Kassanis/World Vision Now that his mother, Fausta from Uganda, places a mosquito net around his bed, Zeveriyo, 7, is better protected from malaria, taking less time out of school because of the disease.

World Vision 20 2013 Annual report and accounts EVIDENCE OF REAL CHANGE FOR CHILDREN

Malnourished Maimun, WE’VE DEMONSTRATED HOW eight-months-old, WE’RE TRANSFORMING is benefiting from a World Vision nutrition CHILDREN’S LIVES programme in Somalia. Measuring the impact we have on children and communities is challenging, but important. It makes us accountable to our supporters, our partners and the communities we serve, which helps us gain further support. And it helps us understand what we’re doing well and what we could do better, so we can use our resources as effectively as possible.

Our Impact Report shows that 67% of the 3.9 million children supported were benefitting from one of our key themes (health, child protection and humanitarian action). Other important ways we support children include education (293,612 children), livelihoods (672,381 children) and community empowerment WE SOUGHT OUT THE POOREST, (167,035 children). MOST VULNERABLE CHILDREN IN THE POOREST, MOST Perhaps the most effective way of assessing our impact VULNERABLE PLACES is to talk to the children and communities we work with. We use their feedback to improve our programmes and Where life for children is hardest, the need is greatest. make sure we’re meeting their needs and aspirations. In In 2013, we spent £10.3m, or 23.7 % of our field 2013, this experience helped us win our first tender expenditure, in fragile countries supporting 3,043,764 from the Department for International Development children. 61% of children we supported were in fragile (DFID) – and we’ve now got special processes in place countries (including Uganda, Niger and Zimbabwe) and for getting feedback from communities in nine DFID- 17% of children we supported were in the seven funded programmes, increasing their impact and countries defined as most fragile (Sudan, South Sudan, benefiting more children. Afghanistan, DR Congo, Haiti, Pakistan and Somalia).

Working in the world’s most dangerous places two World Vision staff lost their lives in crossfire in Through our fundraising initiatives like Raw Hope, we South Darfur, Sudan. Their great loss reminds us of the work to save and protect children where they face the unwavering commitment of World Vision employees greatest dangers. Often caught up in some of the most to help make children’s lives safer, in spite of the danger. violent conflict on earth, children living in fragile* places Our prayers remain with their mourning families and countries are at risk from physical abuse and harm, and colleagues. exploitation and other immediate threats. Sometimes, it is not just children and their communities that are at risk. Tragically, in July last year,

*Where governments are either unable or unwilling to provide basic protection for their people.

World Vision Annual report and accounts 2013 21 CHANGE THAT LASTS

In 1991, World Vision UK set up a 15-year community water, reducing the number of cases of waterborne programme in Kimorori, Kenya. The aim of the diseases, including Cholera and Typhoid. programme was to involve the 13,000 strong When we returned in 2013, we found that the number community in various projects, including those of people benefiting from safe water had continued: designed to improve water access and boost food security. • In 2006, just 32.2% of the community was able to access clean and safe water. In 2013, this number In 2013, a World Vision UK team returned to Kimorori, reached 62.8% - a significant improvement. seven years after we left, to see how community life has changed. The data we gathered as part of our • In 2013, 17% of people had piped water supplied to evaluation study showed that around 60% of project their homes, compared to only1% in 2006. activities we were involved with were still running and • 82.1% of households are still accessing water from making a positive difference. Here we share some of the sources constructed during the time of the our project successes. World Vision programme. Safer water: When we arrived in Kimorori, improving • Incidents of Cholera and Typhoid have continued access to clean and safe water was a priority. We did to decrease. this by installing water sources and supporting the community in their management of water supply. • Water is now more affordable, even for the most As a result more households were able to access clean vulnerable in the community.

World Vision 22 2013 Annual report and accounts EVIDENCE OF REAL CHANGE FOR CHILDREN

More food: As well as supporting the community with Antony’s story access to safer water, we also developed projects to help people in Kimorori grow more food to become self Antony was born in Kimorori into reliant, generate an income and improve their diets. The a large family. When he was 12, a most successful projects were mango growing and raising World Vision supporter sponsored goats, with farmers able to boost incomes by selling Antony. This enabled him to goat offspring. complete secondary school education. With the aid of a government grant, “We are getting milk and school Antony studied agricultural economics at university fees from [our] dairy goat project,” and now helps gather data and evaluate the impact woman from Mundanda village. of World Visions’ work in Kimorori. Antony says that sponsorship changed his life:

“World Vision taught us about moral values and this Agricultural training also enabled 100 households to master gave me hope. Many children who did not have this organic farming. Of those trained in 2006, 45.8% said their opportunity lost hope and dropped out of school. training helped them improve their yields. By 2013, this My brothers and sisters look up to me as they have number rose to 55.6%. Yields in beekeeping and pig farming seen what I have achieved. They want to copy me.” also increased for 500 families in the community. Many other children have also benefited from the With continued improvements in the quantity and quality education opportunities offered through World Vision of available food, over 87.6% of adults and 72.3% of and supported by government. Since 2006, a children are getting three meals a day, compared with over retention rate of 99% of children has been 60% in 2006 – an improvement of over 27% for adults. maintained. Exam results require improvement, but We were delighted to see that so much of the change we the benefits of a bursary fund, originally set up by helped implement has continued in Kimorori, which is World Vision, and the construction of classrooms becoming more and more urban. A factor which has also near water points are all on going. Many children helped bring economic development and increase school from Kimorori have gone on to study at university enrolment rates in the area. and embarked on professional careers.

ATTITUDES TOWARDS HIV AND AIDS

There has also been considerable success in reducing the stigma associated with HIV and AIDS. Discrimination against sufferers has reduced from 35% in 2006 to just 4.7% in 2013, while social support for those with HIV and AIDS has gone up from 36% in 2006 to 88% in 2013.

Village leaders (left and centre) stand with Hilary Williams, a World Vision UK staff member.

World Vision Annual report and accounts 2013 23 2PRIORITY A TRANSFORMED SUPPORTER EXPERIENCE World Vision inspires the UK through evidence of changed lives and an innovative experience of walking with the poor.

The challenge WHAT WE’VE ACHIEVED THIS YEAR When you support World Vision UK, you want to see that we’re using your donations wisely and effectively to transform the lives of the world’s poorest children. WE’VE BROUGHT SPONSORS Transparency and accountability are vital – but we want AND CHILDREN CLOSER to go further. We want to use our grassroots presence TOGETHER in thousands of communities to bring you a unique insight into the lives of the children you’re supporting. So you know that you’re not just giving money towards Closer contact: Technology is making the world smaller a distant cause – you’re making a real difference to the – and we’ve been using it to bring sponsors and the lives of real children in practical, concrete ways. children they support closer than ever before. This year, we began trying out new types of communication to make the sponsorship experience more vivid and personal. Sponsors WHAT WE AIM TO DO BY 2015 involved in our pilot received a welcome video, a video greeting from the child they sponsor and a video giving a We will: glimpse into the life of the child’s community. They have • Find compelling ways to communicate the impact also been receiving extra updates and photographs of the we have made to different audiences, from children and their communities by email, helping to individual supporters to government departments. strengthen the bond between them. We plan to bring this • Enable closer interactions between people in the experience to all our supporters in UK and the children and communities they support. the months ahead This will involve embracing new technologies and – and it’s also creating innovative products and services to inspire an initiative our supporters. that we’re working together to implement with the rest of the global World Vision Partnership.

Last year, supporters travelled the world – from Albania to Uganda – to meet their sponsored children.

World Vision 24 2013 Annual report and accounts A TRANSFORMED SUPPORTER EXPERIENCE

Child reporter Memory, 14, from Malawi and Mequant,15, from Ethiopia.

©2012 Aklilu Kassaye/ Limbani Davis First-hand news: In 11 of our projects, sponsored Nsapato World Vision children have become reporters – writing their own updates, sharing their experiences and telling sponsors “World Vision built a new library. It has lots of books about life in their community. It’s a chance for the to help students learn more. There are also classes for children to talk about the things that matter to them students so that children can learn crafts that will help and showcase their new skills and achievements. them earn a living when they leave school. I am holding Sharing news in this way gives children a voice and some of the crafts woven by the students here.” sponsors an authentic insight into life in some of the Memory, (pictured above) a child reporter, in Malawi. world’s hardest places.

What our supporters say Reaching out online: Our new website provides even more opportunities for sponsors and children to get to “I like the way World Vision uses technology with know each other. The new ‘My Sponsorship’ area provides a things like emails and blogs to bring you closer to wealth of information about the countries and communities the community” – Sam from Bristol where children live: sponsors can find out more about the “I have spoken to many people over the years and projects we’re working on, view photos, read what the shown them photos and videos of the great projects children have to say and see specific prayer requests. The you support” – Jackie from Edinburgh site makes it easier than ever for sponsors and children to stay in touch – with just a couple of clicks they can send an “I particularly love the online Christmas card and email, or even create a birthday or Christmas card. Through birthday card function and being able to upload the website and our Facebook page, sponsors can interact interesting pictures for the children to enjoy. It’s really with each other and exchange experiences. Perhaps most hard for me to get into town to the post office so inspiringly, sponsors are able to share their life-changing being able to do it all online is such a joy” experiences of meeting their sponsored child, encouraging – David from Somerset others to do the same.

World Vision Annual report and accounts 2013 25 WE’VE ENABLED SUPPORTERS a tv star in sierra leone TO REACH OUT AND INSPIRE OTHERS In 2013, we were delighted when Elizabeth McGovern - one of the stars of ITV’s hit series Downton Abbey - became a World Vision Artist Inspirational Ambassadors: Our Ambassadors Ambasador. In this role Elizabeth shares her passion programme is going from strength to strength. We’ve now for our child sponsorship work with over 3,000 trained 80 passionate volunteers to help us inspire people of her Twitter followers and thousands of her fans in the UK to become child sponsors, and another 50 at gigs of her band, Sadie and the Hotheads - people are looking to get involved. In the past year, they’ve encouraging them all to become World Vision spoken at social clubs, churches and schools, reaching more supporters. than 6,000 people, raising money and directly recruiting new sponsors. Many of our Ambassadors have been inspired by visiting the children they sponsor. This year, we took a group of six new Ambassadors to Senegal to meet their sponsored children and see first-hand how sponsorship is transforming the lives of children and their communities. They returned saying it was a profound, life-changing experience, one they would never forget.

Artist Ambassadors: This year, 11 talented artists have been wowing audiences across the country with ©2013 Alex Whittle/World Vision Alex ©2013 charismatic performances while spreading the word about child sponsorship, as part of our new Artist Ambassadors programme. All of our artists are existing World Vision supporters, able to speak authentically and inspiringly about what child sponsorship means to them. They include: Elizabeth McGovern – aka Cora, Countess of Grantham from Downton Abbey – with her band Sadie and the Hotheads; award-winning comedian Jo Enright; and the Searchlight Theatre Company. We know that spreading the World Vision message through a memorable night out is a As the sponsor of five-year-old Jestina from Sierra great way to build a relationship with potential supporters Leone, Elizabeth also shares her experiences of and are excited about expanding the programme and sponsorship with her fans. When she met Jestina bringing on board other celebrities next year. (pictured) in 2013, Elizabeth said: “I’ve seen the child who’s benefiting, I’ve seen the schools, I’ve seen the health centres and I’ve seen the communities. I now have personal experience of tracking the work that World Vision is doing – it’s working and it’s working well.”

World Vision 26 2013 Annual report and accounts A TRANSFORMED SUPPORTER EXPERIENCE running for children

Abu Tadesse grew up in Ethiopia and “Receiving postcards and colourful pencils from our was sponsored by World Vision for sponsors renewed my mind and filled me with energy seven years. Today, he lives in the UK and to go forward. is a World Vision Ambassador, sharing his “I finished school with excellent results and got offered story, fundraising and encouraging others a place at university. Later on, I joined World Vision to help change children’s lives. Ethiopia as a development facilitator in Banja. “In 2012, I got a visa to live and work in the UK. My “I spent my early childhood in a remote area. For me, life plan is to specialise in international development and was hard. I so wanted to study but it was difficult humanitarian emergencies. I would like to work for because I was often cold and hungry and we could not World Vision to serve God. Until then I am an afford many exercise books. Ambassador, which enables me to talk to different audiences about my experience of being a sponsored “During grade 3 of school, I learned that World Vision child and encourage others to make a difference. had started operating in my district. I was registered for sponsorship and was sponsored for the next seven years. “I also raise funds for World Vision. I took part in the Cardiff half marathon barefoot. I did this to remember “Each year, World Vision provided me with exercise the children who are not living life in all its fullness. books, pens and pencils as well as food, medication Running with bloody feet was nothing compared to the and cards. My hope grew and I was able to write and fear that millions of children endure living in the world’s draw as much as I wanted. My interest for education toughest places, without hope or opportunity.” increased dramatically. ©2013 David Brand/World Vision

Add Caption Abu displays his medal after competing in Cardiff.

World Vision Annual report and accounts 2013 27 3PRIORITY GROWING OUR INCOME AND WHAT WE’VE ACHIEVED INFLUENCE THIS YEAR World Vision increases its income and In a challenging climate where many charities are finding influence to become one of the UK’s fundraising difficult, our income closed 3% down at £66.7 leading international aid agencies million, compared with £68.8 million in 2012 and £67.9 supporting vulnerable children in the million in 2011. We’ve seen strong growth in our income from grants which has more than doubled in the last three world’s most difficult places. years – from £10.7 million in 2010 to £21.9 million in 2013. The challenge FUNDRAISING income The economic downturn will continue to hit household and government budgets for the next few years. While Our voluntary income fell by 3%. Sponsorship income we’re thankful that the government has remained firm hasn’t grown as we’d hoped, and we’ve struggled to replace in its commitment to growing the aid budget, we supporters who’ve been unable to continue donating. recognise that growing our income as quickly as we Nevertheless, we’ve still been moved by the generosity of planned will be challenging while public donations the UK public. Our Syria crisis appeal raised £610,000. continue to come under pressure. We must ensure we Raw Hope, our initiative to protect children living in the not only maintain, but increase our income and world’s most dangerous places, grew from around 3,000 influence so that we can have an even greater impact supporters in its first year to 5,000 this year. We’ve also on the lives of the children we support. been encouraged by the growing number of supporters leaving legacy gifts (see page 27 for an example), so they can continue to help vulnerable children beyond their What we aim to do by 2015 lifetimes; we’ve been looking into how we can do more to encourage this. To transform the lives of more children we must raise our profile, attract new supporters and increase donations. To do this we’re investing in: New supporters: One of the most effective ways of engaging people with World Vision, and inspiring them to • Fundraising and engaging communications with support us, is to create memorable experiences. That’s the public. something we’ve been concentrating on.

• Building our influence with policy-makers by Our hugely popular Girls’ Night Out – an inspirational providing compelling evidence of our impact. evening of laughter and tears, • Strengthening our capacity to acquire and manage music and tasty treats – grants from government and international donors. went from strength to strength. We held more events in bigger • Astute financial planning to ensure we can sustain venues, reaching 4,477 women – and increase funding to programmes for vulnerable almost 2,000 more than children over the long term. in 2012.

We also tested a new themed evening, Calabash, held in supporters’ own homes. With food, audio and video, a small group of guests were transported to Sierra Leone to hear the story of Jennah, a child bride – and how World Vision freed her. Feedback has been hugely positive. We’ll be holding more of these World Vision At Home evenings in Now that Mary doesn’t have to travel far to get clean water the coming year and through them we’re expecting to sign any more, she has more time up sponsors for many more vulnerable children. for her schoolwork.

We took people on another journey of discovery with our LEGACIES OF HOPE interactive Step Into Africa experience, which ran for a Legacies left to World Vision change the lives of those they month on London’s South Bank and also visited Brighton touch forever. The ultimate expression of love and hope, and Bristol. Inside two contrasting African huts, visitors legacies fund essential projects around the world, making a could explore the difference child sponsorship makes, while long-lasting difference to the lives of vulnerable children. drumming workshops and 3D glasses stimulated their senses. It provided a great setting to talk to people about Gifts in wills help us to protect and secure the future of child sponsorship. And we made progress recruiting new children and ensure that their lives fulfill the potential they supporters face to face at our stalls at festivals and in nearly are born with. Children like Mary (pictured) living in 40 shopping centres around the southeast. Angola are now finding their lives transformed thanks to some generous gifts in wills that have helped fund a water,

Before the project started, many communities were unable to access safe water, taking their water from rivers, ponds and open wells – exposing themselves to waterborne diseases, many of them life threatening. With the installation of local boreholes, not only is the long- term health of children improving, so is their education, as they spend more time in school, rather than travelling long distances to fetch water.

Ladies at a Calabash evening, Joseph Rajasingham was one of the kind benefactors that learning about World Vision sponsorship. helped Angola’s children through this project, giving them hope for a brighter future. Joseph left his estate to World Vision “in memory and recognition of the support As a commitment to best practice and his late wife gave to children in need” and in doing so transparency in fundraising, World Vision UK gave a gift that generations of Angolan children shall is a member of the Fundraising Standards Board. To find out more visit www.frsb.org.uk never forget.

World Vision Annual report and accounts 2013 29 Government & GRANTS income DFID STRATEGIC PARTNERSHIP

This year, with 78 grants under our management, we’ve Mothers and young children in 83 communities are been more successful than ever in forming and noticeably healthier, with more safe births, better strengthening partnerships with grant-awarding bodies, nutrition and fewer cases of diarrhoea, fever and impacting the lives of at least 4.5 million children in 21 respiratory infections. In 51 communities in Armenia, countries. By working with partners who share common India, Kenya, Malawi, Uganda and Zambia, local people goals, we’re able to make a bigger difference: say they are getting better education and health services as a result of lobbying local and national • 50,000 girls in Zimbabwe will have the chance of an government. Across 11 countries, 215 communities education, thanks to one of our largest grants from have stronger systems in place to protect children and DFID (the UK Government’s Department for bring those who exploit or abuse them to justice. International Development), worth almost £12 million over three years. This is just some of the progress we’ve seen in our ongoing Programme Partnership Agreement (PPA) • 344,000 people within Syria, as well as refugees with DFID. Working with 65 projects across 25 from Syria and their host communities, will countries, the partnership supports communities to receive essential support as a result of £5 million protect children, improve the health of mothers and from DFID. children, and get better access to vital services. We’re • Hundreds of thousands of adults and children pleased to say that, so far, we’ve met or exceeded all living in a remote area of DR Congo will receive our targets. healthcare from a regional consortium led by The PPA is worth almost £20 million over five years. World Vision UK, after we signed a five-year This sort of funding allows us to innovate, develop our DFID contract worth £14.5 million with IMA experience and expertise and increase our impact. World Health. And this in turn means we can transform more lives, • Children in Malawi and Zimbabwe as successful community initiatives influence local, will benefit from clean water and national and international policy and are replicated in improved sanitation, thanks to other places. support from DFID and UNICEF.

Grace and Gloria, both aged 10, are benefiting from improved sanitation at their school in Malawi.

World Vision 30 2013 Annual report and accounts GROWING OUR INCOME AND INFLUENCE

In the lead up to the summit, 6,038 World Vision UK ©2013 Oli Lewington/World Vision supporters joined the campaign. Of these, 460 wrote to their MPs and more than 1,545 watched the prayer video we made with the 24/7 prayer network, while many joined over 45,000 people at the campaign’s rally in Hyde Park.

The climax of the campaign was reached at the high-level Nutrition for Growth (N4G) meeting, co-hosted by the UK government, the Children’s Investment Fund Foundation (CIFF) and the Brazilian government. Not only did donors ©2013 Oli Lewington/World Vision and governments officially pledge a staggering £2.7 billion to tackle undernutrition, but Rose Ndolo, World Vision Kenya’s National Nutrition Coordinator, also took to the platform. There Rose brought alive the stories of Kenyan children and their families whose lives are blighted by hunger before she announced an incredible additional £800 million pledge from the World Vision Partnership. Top right: Abdul, from Pakistan, writes a letter to the G8 leaders. Above: World Vision supporters joined 45,000 campaigners at Hyde Park. Described by Rose as “a special moment to help end hunger and malnutrition,” these pledges will help save the AN INFLUENTIAL VOICE… lives of almost two million children and help prevent 20 million growing up stunted by 2020 – strengthening further Global hunger, child marriage and the crisis in Syria have all our mission to transform the lives of the world’s most hit the headlines this year, and governments have made vulnerable children. progress in addressing the health and protection of The IF campaign also secured other commitments that will children. We’re proud to have played a part in this, as we help tackle global hunger, including: a promise from the UK increasingly bring the hopes, fears and needs of children in government to spend 0.7% of GDP on aid; agreement from the world’s hardest places to the attention of politicians, governments to clamp down on tax dodging; and civil servants and the media. agreement from the G8 to trial partnerships to help make buying, owning and selling land much fairer in developing ... on child health countries. Enough Food For Everyone IF: We helped make a As well as the N4G meeting, we were also involved in breakthrough in the fight against undernutrition, which kills organising a number of side events, including a roundtable three million children every year, through the IF campaign. on nutrition in fragile contexts and a church service A coalition of 200 charities, businesses and faith and attended by 3,500 people. At the service, we worshipped community groups, IF used the UK’s presidency of the 2013 God with our supporters, colleagues, Trustees, friends and G8 summit to call for action to tackle the root causes of family and were moved by Aimee Manimani’s, (from World hunger. Our demands included more aid – although Vision’s national office in DR Congo) powerful words as undernutrition is responsible for around 45% of all global she us told how undernutrition kills more children in her child deaths, just 0.4 percent of global aid is spent on war-torn country than conflict does. Aimee’s story helped addressing it – and an end to unfair corporate practices like us all connect with and long to bring hope to children living tax dodging and land grabs in developing countries3.. in one of the world’s poorest and most dangerous places.

World Vision Annual report and accounts 2013 31 Children’s nutrition in fragile places: During the We investigated these complex issues in our report Untying IF campaign – at the G8 and the N4G summit – we the Knot: Exploring Early Marriage in Fragile States. The lobbied world leaders to prioritise aid in fragile places, report was launched both in Parliament and at a side event where hunger hits hardest. We were delighted when we at the UN Commission on the Status of Women in New persuaded the DR Congo government to commit to York. At the standing-room-only event, co-sponsored by Scaling Up Nutrition (SUN) – a movement launched in Girls Not Brides (a global partnership of more than 300 2010 by the UN Secretary General to help tackle child organisations from over 50 countries committed to ending hunger. After two decades of conflict in DR Congo, far child marriage), Anika, one of our sponsored children from more people have died as a result of disruption to their Bangladesh, spoke about her own early marriage and Lynne food supplies than in the fighting, so this should have a Featherstone, Parliamentary Under Secretary of State for huge impact. International Development, applauded our report. Justine Greening, Secretary of State for International Development, ... on CHILD PROTECTION put early marriage on the agenda at an international summit on violence against girls and women in emergencies, hosted Against early marriage: Almost one in three girls in by DFID. developing countries marry before they turn184.. Many are much younger, with girls as young as eight married off to men many decades their senior. The problem is worst in Ending sexual violence: Too many children live in fear fragile states – in Niger, for example, 36 percent of girls are of sexual violence – particularly during conflicts and married before 15, and 75 percent before 18. Ironically, emergencies. So we’re pleased that the Foreign Secretary many parents in poor, conflict-ridden or disaster-prone William Hague has made tackling sexual violence a priority countries see marriage as a way of protecting their children. and we’ve been working closely with the Foreign and © 2012 Dana Palade/World Vision

Now that early marriage is less prevalent, Maria, 12, from Niger is now able to spend time studying and continuing her education. “I want to be educated so people respect me,” says Maria.

World Vision 32 2013 Annual report and accounts GROWING OUR INCOME AND INFLUENCE Commonwealth Office to ensure that protecting children is Baroness Northover, a central part of this approach. We influenced the House of Lords spokesperson for Women Declaration on Preventing Sexual Violence in Conflict, and Equalities, holds launched by foreign ministers at the G8. The declaration © 2103 Gavin Crowden/World Vision a copy of our Untying The Knot report. included 13 references to children, including all nine of the policies we’d specifically advocated. These include providing appropriate support for child victims, and making sure the needs and rights of children are taken into account in peacebuilding missions.

Throughout, our emphasis has been on prevention being better than cure, encouraging behavioural change so that incidents of sexual violence are reduced as societies become less and less tolerant of such acts. Rt Hon Justine Greening MP announcing that the © 2013 Patricia Mouamai/World© 2013 Patricia Vision UK will allocate £50 million to help Syrian ... on emergencies refugees in Lebanon and host communities.

Syria and Lebanon: More than half a million Syrians have taken refuge in Lebanon over the last three years, and the number is increasing all the time – one in four people in Lebanon are now thought to be a refugee. For the most part, the Lebanese have responded with extraordinary generosity, welcoming Syrians into their homes, schools and hospitals. But the sheer numbers are proving an unbearable strain. Host communities, as well as refugees, need support. We highlighted this in our report, Under Pressure: The Impact of the Syria Crisis on Host Communities in Lebanon, launched In Lebanon, World Vision at an event in Parliament in July, where Alan Duncan, is supporting Syrian refugee Minister of State for International Development spoke. The children like Rouaa, 4, who is living with her family in a report was well received, attracting additional support and garage that is also home to funding for Syrian refugees and their host communities. At other families. the same time, World Vision colleagues in Hong Kong, USA, Australia and Canada also used the report for lobbying. © 2013 Patricia Mouamai/World© 2013 Patricia Vision

Somalia: We’ve been working in Somalia – one of the world’s most fragile states – for 20 years. So we were able to take a lead in key conferences on the country in the UK and Brussels. At the UK conference, attended by Prime Minister David Cameron and other world leaders, the UK and other donors pledged £84 million in aid for the east African country. Protecting women and children from sexual violence, was highlighted, reflecting World Vision’s own priorities.

World Vision Annual report and accounts 2013 33 4PRIORITY BEING AN INSPIRING AND EFFECTIVE ORGANISATION World Vision lives out a culture of accountability and innovation, resilient and dynamic in adapting to a world of change. The challenge WHAT WE’VE ACHIEVED THIS YEAR World Vision UK has amazing staff who are committed to our vision and has strong grassroots support in the The last few years have been hard for everyone. UK. Through the World Vision Partnership, we have a Governments and households are cutting back on spending, significant global presence, meaning that our ability to even as charities like us find we have ever more work to do. form connections between people across the world That means we’ve needed to take measures to become a is unparalleled. more effective and more competitive organisation, better However, the continued economic challenges and tough able to weather change and continue our vital work through environment for charities mean that World Vision needs difficult times. to innovate, adapt and change in order to sustain and grow our support to our colleagues and partners in Reinvigorating our strategy: We’ve refocused our the field and make an even bigger difference to strategy to reflect the challenging economic climate. children’s lives. Although our income is holding up, we’ve seen a fall in our supporter numbers. Unless we address this, it will have a serious impact on our ability to transform more children’s WHAT WE AIM TO DO BY 2015 lives in the years ahead. We need to invest more now in growing our income – in attracting new supporters and We are inspired by our work and want to inspire retaining our existing ones, in winning and managing grants, others with the difference our projects make. To do and in encouraging other forms of giving. By spending more this, and to achieve our mission, we need to be focused on fundraising in the short term, we can do more for more and effective in everything we do. We will: children in the long term. • Confidently and consistently live out our Christian identity. We’re striving to meet the commitments we’ve made to • Invest in a clear, compelling brand that reflects who the children and communities we work with, but we’ve not we are. been able to start some of our planned programmes. And while influencing national and international governments • Nurture, encourage and reward our staff, recruit remains hugely important, we’re increasingly sharing new talent and invest in our leaders and managers. advocacy work with other members of the • Invest in innovation, enabling staff to come up with World Vision Partnership. As the world’s largest children’s new ways to support, inspire and transform charity, World Vision has a wealth of expertise and children’s lives. experience. We’re looking for opportunities to do more • Be more accountable through enhanced financial work in partnership with other offices, and to draw on each and project management. other’s complementary strengths and resources.

World Vision 34 2013 Annual report and accounts BEING AN INSPIRING AND EFFECTIVE ORGANISATION Neil Gonsalvez

Strategy and Planning Specialist: “I joined World Vision in December 2012, after working for two leading management consultancies in Australia. I was drawn to World Vision because it is a global leader in helping the world’s poorest children and showing God’s love in the world.

“As I’m new to international development, the team here has really helped me appreciate what life is like for vulnerable children and what it takes to help change their lives. I regularly seek God’s guidance and Reshaping our organisation: As we’ve refocused our ask for his blessing in strategy on fewer, clearer priorities, we’ve changed the new strategies and shape of our organisation. We’ve created some new roles in plans. It’s a huge areas such as fundraising and grant management, and privilege to be able to changed other roles significantly. While the changes will mix my faith and work make us more effective, we’ve sadly had to make some so closely.” roles redundant. Overall, this has meant a reduction in our total workforce. We’ve worked hard to make sure staff are aware of, and involved in, all of these changes, and to support those affected by them. We’re confident, though, that these changes mean we are now a stronger organisation with departments working together more Sarah Wilson closely, sharing services and resources. Our overall aim is to be a healthy organisation where people thrive. We’ve begun Senior Emergencies Specialist: “As a journalist, a staff talent initiative to identify how we can support the I’m very interested in international affairs. On a passionate people who ultimately make World Vision UK an personal level, I’m passionate about tackling global inspiring and effective organisation. inequality. Working for World Vision, I bring both of these things together.

Strengthening our brand: As we seek to appeal to “My role – whether I’m reporting from the field in the more supporters, it’s essential that people know what DR Congo or I’m in the London office – enables me World Vision UK stands for. To do this, we chose five simple to highlight the stories of vulnerable children living in words: Every child free from fear. By putting this message at the hardest places, the sort of places that the the heart of everything we say and do, we bring our work mainstream media to life in the hearts and minds of new supporters. neglects. It gives me the opportunity to Working more efficiently:We’ve further streamlined influence high-level our business and internal processes to make sure we decision makers to operate as effectively and as efficiently as possible. After institute policies aimed much preparatory work in 2013, we’ll be launching a new at reducing poverty computer system this year that brings together our finance and inequality around and project systems, allowing us to make the best-informed ©2013 Dan Pacek decisions using real-time data. the globe.”

World Vision Annual report and accounts 2013 35 STRATEGY AND PLANS FOR THE FUTURE Now three years into our 2011 to 2015 In 2014, we’ll focus on the following three areas of income: strategy, we take stock and share our next steps. 1. Child sponsorship: to help reach as many children as possible, we will focus on attracting more sponsors. We aim to achieve this by making sponsorship as engaging Looking back over the last three years, we have much to and rewarding as possible – offering innovative and thank God for – we have compelling evidence that we original ways for sponsors and their children to connect create real change for children, that our supporters are and build enduring relationships. feeling closer to their sponsored children and that our influence with, and grant income from, government grows 2. Grants: grants have driven our overall income for the stronger and stronger. past five years and are our largest source of funding for the poorest children living in the world’s most dangerous As economic austerity has continued and we face more places. To make the most of these funding opportunities, competition, our aspiration to transform the lives of the we’ll invest to secure new contracts and manage existing world’s poorest children remains steadfast. To achieve this ones well. We’ll also recover more of our costs associated though, we’ve had to refocus our strategy to ensure we with this and grow our sources of match funding. can provide a long-term impact in the lives of the children we serve. 3. Major donors: we will build on the growth and strong performance of our major fundraising to help us grow Although our income has held up, our supporter numbers our income, enabling us to reach more vulnerable have fallen. We’ve recognised that it’s vital for us to reverse children and their communities. this trend – without our supporters our ability to transform lives is greatly reduced. So, we will invest more in growing our income to attract new supporters, in winning and managing grants and encouraging other ways of giving. To achieve more in the long term, we will spend more on fundraising in the short term.

As part of this process, we’ve looked hard at where we can make savings. Although we will continue to meet our commitments to the children and communities we currently work with, for now, we’re unable to start new programmes. We’ve also decided to share much of our advocacy work with other members of the World Vision Partnership – it makes sense, as the world’s largest children’s charity to draw on our global strengths, experience and resources.

In DR Congo, World Vision is working to help children like Jacques, 8, (main image) and Salumu, 7, (inset) find safe places to be educated, rather than spend the day outside keeping goats in a region suffering with violent conflict.

World Vision Annual report and accounts 2013 37 The investment and other income remained level at £0.1m FINANCIAL REVIEW as we continue to prioritise getting cash to the field, security of our deposits and ethical investing of our funds. SUMMARY CHARITABLE EXPENDITURE 2013 was a challenging year for World Vision UK. After five Charitable expenditure increased by £2.3m to £59.4m years of successive income growth, total income fell by primarily due to increasing remittances to overseas £2.1m to £66.7m, but in the face of this it has also been programmes. We have delivered on commitments to a year in which we have improved or maintained our key the field by managing cash balances and reserves while operating ratios. We had a record year for institutional programme support costs and advocacy and education grants and a large increase in donated goods and services, costs reduced by 6.1% to £5.4m. The percentage of but falls in committed giving due to a fall in the number charitable activities within total costs has increased from of child sponsors and emergencies. However, savings 83.3% to 84.4%. in support costs realised from the 2012 restructuring programme, tight cash management and cost controls OTHER EXPENDITURE allowed us to increase our remittances to projects by £2.6m Other expenditure, which includes the cost of generating while our charitable activities ratio increased from 83.3% funds and governance costs, decreased by £0.5m to £10.9m. to 84.4%, our cost of generating funds fell from 16.0% to This was achieved whilst fully supporting the five-year 14.9% and our governance costs fell from 0.7% to 0.6%. strategy, beginning to address pressures on child sponsorship Our overall financial strength remains stable with reserve and committing to the IF campaign. Year on year our cost days falling by one day to 33 days. efficiency has improved as our costs of generating funds has fallen from 15% to 14.9% and our governance costs are INCOME down from 0.7% to 0.6%. Most encouragingly we saw an increase in institutional grants of £0.9m to £21.9m, our highest ever annual total. FUNDS AND RESERVES Our acquisitions beat all targets and past records with The Trustees review the reserves policy annually. The policy £39.0m lifetime value from 24 new grants won and our first requires free reserves to be maintained at 25-45 days breakthroughs into the new world of larger, thematic and of applicable expenditure (that is, total expenditure less consortium based grants and tenders such as the DFID/IMA donated goods and services that do not involve a cash DR Congo health programme (£15m over five years) and outflow). This is equivalent to a range of £4.5m to £8.2m the Girls Education Challenge fund (£12m over three years at current expenditure levels. The Trustees consider that in Zimbabwe). We also saw £2.0m increase in donated this is an appropriate level for reserves in order to provide goods and services with the largest single component being adequate working capital. £1.5m for an agricultural e-voucher project in Zimbabwe. Free reserves, which comprise the General fund were The fall in committed and other donations by £3.0m to £5.9m at the balance sheet date, which represents 33 days £38.9m was largely due to the reduction in the number of applicable expenditure. This was slightly down from of child sponsors and stabilising this support base and £6.2m in 2012. returning it to growth is a clear focus as we look to the The charity has designated funds: coming periods. We also experienced reduced donations for emergencies from £2.1m to £1.7m as there were fewer The Tangible fixed asset fund, which amounted to £2.1m high profile emergency situations during the year. at the balance sheet date, represents the net book value of tangible fixed assets less related financing and is therefore not distributable.

World Vision 38 2013 Annual report and accounts The Emergency relief fund balance of £0.5m from 2012 We reviewed and updated our hedging approach in 2013. FINANCIAL REVIEW has been transferred to the General fund at the balance The majority of our remittances to the field are in US sheet date. Any pre-funding of emergencies arising without dollars but our income is largely in British pounds. To better specific income source will now be provided by the ensure stability around the cost of remittances to the field General fund. we have introduced a longer-term hedging approach with a three year outlook going forward. The Strategic initiative fund, has been transferred to the GOING CONCERN General fund as we invested in projects during the We have set out above a review of the financial financial year. performance during the financial year and our reserves position at the year end. We have adequate financial Restricted funds, which amounted to £6.5m at the balance resources and have the structures in place to manage sheet date, are subject to conditions imposed by donors or the business risks. In addition, the review of the five-year implied by the nature of an appeal. strategy and our budgeting and forecasting process have BANKING AND TREASURY taken into consideration the current economic climate and The investment policy and investment performance are its potential impact on both our various sources of income reviewed by the Finance and Audit Committee regularly. and expenditures. The objective of short-term investments and cash held at banks is to maximise security, by spreading the funds across We have a reasonable expectation that we have adequate five or more banks with high credit ratings while still seeking resources and control mechanisms to continue in to maximise available returns. The objective for longer-term operational existence for the foreseeable future. investments is to manage risk while seeking to maximise the overall return on a combined capital and income basis, Further, we believe that there are no material uncertainties subject to the need for rapid realisation. World Vision UK that may cast doubt on the charity’s ability to continue as applies, wherever possible, ethical criteria to the investments: a going concern. Therefore we continue to adopt the going for example, it does not invest in companies with significant concern basis of accounting in preparing the annual interests in armaments, gambling or tobacco, and each financial statements. financial year it discusses social responsibility policies with INTERNAL CONTROLS AND INTERNAL AUDIT the institutions with which it invests. The organisation has documented systems of internal financial controls and procedures which are reviewed Short-term investments reduced by £0.8m to £5.5m and annually by financial management. These systems provide represents funds held in short-term deposits with our banks. reasonable, but not absolute, assurance against errors or Returns of 0.34% (2012: 0.49%) were achieved during the loss. The procedures aim to ensure the completeness and year on short-term deposits. The reduction in the returns of accuracy of accounting records and document the ways in short-term investments is due to managing the security of which the Trustees have delegated financial authority our deposits so the withdrawal of funds from higher interest within defined limits. The internal controls provide paying banks that have suffered a downgrade in their credit reasonable assurance that: rating. During the year an unrealised gain of £0.1m (2012: • Financial controls are in place to safeguard assets; gain £0.1m) was made on an investment in a common • Transactions are properly authorised and recorded; and investment fund and the year end investments balance • Material errors or irregularities are either prevented or stood at £0.8m. would be detected within a timely period.

World Vision Annual report and accounts 2013 39 The World Vision Partnership has an Internal Audit ownership of and timelines for mitigating actions. Board department that undertakes audits of its overseas Committees review relevant areas of this Log and are able operations including those to which World Vision UK to assess the adequacy of controls and mitigation in place. makes remittances. The primary accountability of the The trends and incidents within the Log can also provide internal auditors is to the Audit Committee of World valuable insight into the evolving risk environment. Vision International, the legal entity providing international As part of a commitment to develop an increasingly coordination and leadership of the World Vision Partnership. embedded and mature approach to risk management, the However, reports on the results of internal audits are made Board and Management team have made significant available to relevant investing entities, which are involved in progress during 2013 towards the definition of a Risk any action taken in the event of an adverse report. Appetite statement. This aims to identify how much risk the World Vision UK has a Programmes and Projects Risk charity can sustain in identified risk areas (risk capacity) and Committee that reviews internal audit reports and other how much risk it desires to take in each area (risk risks in relation to our programmes and reports to the tolerance). The Risk Appetite statement allows for an Finance and Audit Risk Committee. Audits are also carried in-depth and strategic discussion of key risk issues at Board out for some of our government donors. and senior Management level and will equip the charity with a valuable tool for decision-making and reporting across RISK MANAGEMENT the organisation.

The pursuit of a bold plan to transform the lives of children The charity defines key strategic risks as those that threaten in the world’s hardest places necessarily exposes the the fulfilment of the core strategic objectives within its charity to significant risks which must be assessed, managed business plan. The following key strategic risks and an and, at times, embraced if the charity is to achieve its important inherent risk were identified during the year: strategic objectives.

The Board has established a formal risk management process and internal control framework to ensure intelligent, proactive and consistent management of risks, so that the charity can maximise strategic opportunities in the changing and competitive environment of the UK charity sector and within the challenging and fragile contexts of international aid and development.

An annual Risk Register identifies the risks facing the charity within four categories: strategic, operational, reporting and compliance. Risks are assessed and a high, medium or low risk rating given based on likelihood of occurrence and their potential impact on the charity. Existing controls for each risk are then identified and a ‘residual’ risk rating assigned which will be monitored, together with progress against any further mitigating actions planned during the year.

The Risk Register is approved annually by the Board and reviewed quarterly by the Management team with key risks escalated to the Board. A Risk Events Log captures the charity’s risk incidents each quarter and assigns clear

World Vision 40 2013 Annual report and accounts FINANCIAL REVIEW Strategic priority Risk Mitigating action Evidence of real Given our commitment to work in fragile contexts World Vision Partnership Programme change for children challenged by conflict or instability and poor Support Code and Teams to address infrastructure, there is a risk that we will be unable to capacity issues in-country. Agreed “child Transformed operate effectively, leading to an inability to achieve and wellbeing” outcomes and standards for supporter experience demonstrate impact to UK donors. programme design, monitoring and evaluation.

Grow income Given the strong media appetite for scrutiny of, and Integrity of internal processes, commitment and influence reporting on, charities and the increased exposure to to quality, transparency and accountability. public comment through social media activity, there is a Defined processes for quality and sign-off of risk that we may incur negative PR leading to a loss of external communications. Risk and crisis reputation, credibility and ability to fulfil our vision and management strategies. World Vision mission. Partnership system for managing global media crises. Grow income Given the increasing dominance of a single (face-to- Testing new and innovative approaches to and influence face) fundraising channel as the only cost-effective fundraising activity. Ensuring high quality means of supporter recruitment within the current experience for new supporters. Sponsor Transformed economic context and competitive fundraising Ambassador programme for sponsors to supporter experience environment, there is a risk of over-reliance on a single recruit sponsors. In-house fundraising approach to public engagement, leading to an inability team pilot. to engage the broader UK public in tackling global poverty.

Grow income and Given the move towards bigger, more complex World Vision Partnership Grants Acquisition influence approaches to institutional funding for fragile contexts, & Management Strategy with an increased there is a risk that we may not be able to generate focus on global grants strategy and resource. Evidence of real sufficient unrestricted income from voluntary donors to change for children provide pre-funding and manage risks of repayment or Exploration with other World Vision disallowed costs, leading to an inability to pursue fundraising offices of possible shared opportunities which could transform the lives of approaches to grant-match requirements. children in the world’s hardest places. Refinement of UK grants management framework and more integrated financial reporting to monitor potential exposure.

An inspiring and Given the difficult economic environment and increasing Staff Performance Development System. effective organisation pressure on our fixed cost base, there is a risk that we Talent Management and Succession Planning. may be unable to retain, value and develop our people, Monitoring of Turnover. Annual Staff leading to staff burn-out, loss of key talent and failure to Engagement Survey and quarterly Pulse maintain our core values or deliver strategic objectives. Check. Staff Wellbeing strategy and activities.

Inherent risk Given our reliance on third parties to deliver overseas Well established financial controls and programmes and our commitment to operate in monitoring systems within the World Vision contexts where fraud and corruption may be prevalent, Partnership. Regional, National and Global there is a risk of insufficient control over financial Internal Audit systems. Global Risk management, leading to potential misuse of our Management and Anti-Corruption Policies, charitable funds and inability to achieve impact. fraud assessment and response procedures.

In Cambodia, girls participate in their lessons at school.

World Vision 42 2013 Annual report and accounts CORPORATE STRUCTURE WORLD VISION UK CORPORATE STRUCTURE AND GOVERNANCE World Vision UK was incorporated in England on 3 AND GOVERNANCE November 1982 as a company limited by guarantee (No. 1675552) and is a registered charity (No. 285908). The unique structure of the World Vision Partnership Members of the charity are the Trustees whose liability is means that we can work alongside children, families and limited to £1 each. The charity’s governing document, its communities in almost 100 countries to overcome poverty Memorandum and Articles of Association, sets out its and injustice. The World Vision Partnership is a network of objects, powers and matters relating to the running of its national entities constituted in a federal partnership internal affairs. governed by local Boards of Trustees (Boards) or Advisory World Vision UK’s charitable objects are: Councils. This means that overall control of the organisation is not held by a central body, but shared with our global 1. To relieve or prevent poverty anywhere in the world, partners. particularly (but not exclusively) among children, by means including (but not limited to): World Vision UK is a committed member of the World Vision Partnership and by signing the Covenant of • Emergency relief that assists people affected by conflict Partnership agrees to abide by common policies, standards or disaster and core documents such as statements of mission, vision • Sustainable development that improves the conditions of and core values that bind the Partnership together. The life in socially and economically disadvantaged Covenant is based on the principle of national entities held communities together, under God, by voluntary commitment rather than legal contract. • Advocacy by educating, engaging with and mobilising people in the UK and other countries concerning the The Board of Directors of World Vision International nature, causes and effects of such emergencies and oversees the World Vision Partnership’s global strategy and poverty. coordination, including approving global budgets and determining international policy. The World Vision 2. To promote and uphold the principles of the Christian International Board appoints and evaluates the International religion, including (but not limited to) working with and President, who is the Chief Executive Officer and a Board strengthening the work of Christian churches in any part member. of the world in providing services to communities, including (but not limited to) those affected by There are 24 Board Members from 19 countries, including conflict, disasters and poverty, regardless of race, the UK, reflecting the approach that Board Members are nationality, religion, gender or political affiliation. drawn from all the continents in which the partnership operates. This system empowers entities in developing Board and management roles countries and ensures regional opinion is expressed. The World Vision UK Board of Trustees is legally CORPORATE GOVERNANCE responsible for the overall control of the charity and for ensuring that it is properly managed. Principles of The Board of Directors of World Vision UK (the Trustees) governance, including legal compliance, have been identified and World Vision International recognise good governance by the National Council for Voluntary Organisations in is a vital contributor to the effectiveness of the corporate “Good Governance: A Code for the Voluntary and mission and an important safeguard for accountability to Community Sector” which the Board uses in evaluating its the public and other stakeholders. Significant effort is performance. invested in seeking to continually improve governance both in the United Kingdom and internationally. The Board’s principal roles are: World Vision International has a Governance Department • approving the mission, strategies, high level policies and that assists local Boards and Advisory Councils with annual business plan governance by publishing guidance and providing training. It also enables mutual accountability by facilitating Peer • appointing and overseeing the Chief Executive Reviews that evaluate alignment with the World Vision • monitoring performance and risk management Partnership’s core documents and compliance with good governance practice. • reporting performance with integrity and transparency • ensuring compliance with UK law and Charity Commission regulations

World Vision Annual report and accounts 2013 43 • managing its own governance processes, including experience. The Board does not delegate major decisions annual evaluation of Board, Chair and individual to Board Committees; the Committees are responsible for Trustee performance considering significant issues in detail and making recommendations to the Board. Committees report • adding value by advising management substantive points of their discussion to the following • representing the interests of World Vision UK’s stakeholders. Board meeting. The Board delegates responsibility for operational The roles of Board Committees are: management to the Chief Executive, who leads an • The Board Development Committee is responsible for Executive Leadership team (together, the Principal promoting good governance, recruiting Trustees and Officers). The Principal Officers develop most of the ensuring the Board works as effectively as possible, organisation’s plans, policies and processes, and are including Board training and personal development, and responsible for their implementation, following Board overseeing Board performance evaluations. advice and approval. • The Finance Audit and Risk Committee reviews the The Board has ongoing regard to the public benefit annual business plan and budget, monitors risk and financial guidance published by the Charity Commission when performance and ensures compliance with financial and risk reviewing the charity’s activities and future plans. policies and charity legislation. In addition, it liaises with the Board composition external auditors and reviews internal audit reports. The Board is comprised of independent, unremunerated, • The Organisational Effectiveness and Remuneration non-executive directors (Trustees) who have a broad range Committee approves the remuneration of all Principal of skills and experience, and includes the President of Officers and the remuneration policies for other staff. World Vision International. Trustees normally serve for a Additionally it reviews organisational strategies including maximum of nine years and are re-elected every three those for development of innovations and information years based on satisfactory performance. There is provision technology. for extension of service terms (normally three additional • The Public Engagement Committee reviews and years) to fulfil obligations to governance positions within contributes to marketing, communication and campaign World Vision International and for the Board Chair. The strategies, monitors performance against the annual Board Chair and Vice Chair are elected by the Board on an business plan and ensures compliance with fundraising annual basis. regulations. Code of conduct • The Policy and Programmes Committee reviews and The Board expects every Trustee, staff member and the advises on World Vision UK’s development and relief organisation as a whole, to conduct themselves in programmes and advocacy strategies and their accordance with the highest ethical standards. Individual implementation. Trustees evaluate themselves against these standards • Ad hoc Board Committees are set up as and when annually. Trustees are required to disclose any potential required. conflicts of interest to the Board and withdraw from any related Board discussion and decision-making. Major new governance initiatives during the financial year Board expenses • The Board re-appointed Mark Sheard as Chair and Anna Laszlo as Vice Chair for a third term. No fees or remuneration are paid for serving as a Trustee. World Vision UK reimburses reasonable expenses incurred • The Board reviewed and approved a new Ethical Policy, in the course of acting as a Trustee. This includes travel and Recruitment of Senior Management Policy and statement accommodation expenses required to attend meetings and setting out World Vision UK’s Christian Identity in a new training and orientation costs. Every effort is made to “Our Faith” Policy. ensure costs are modest. • Two Trustees visited World Vision field operations, one in Board meetings and Board Committees Afghanistan and another in Uganda, and reported back to the Board on their experience of World Vision’s impact. The Board meets quarterly, with additional meetings as required. Important governance work is carried out by • World Vision International carried out a Peer Review of Board Committees that meet on a quarterly basis to World Vision UK’s governance structures and processes discharge their responsibilities under formal terms of and concluded that World Vision UK was aligned with, and reference which are reviewed annually. Each Committee demonstrating a consistent ability to meet, World Vision includes Trustees with directly relevant skills and International partnership-approved standards.

World Vision 44 2013 Annual report and accounts STATEMENT OF TRUSTEES’ In so far as the Trustees are aware, there is no relevant CORPORATE STRUCTURE AND GOVERNANCE audit information of which the charitable company’s RESPONSIBILITIES auditors are unaware and the Trustees have taken all steps that they ought to have taken as Directors in order to The Trustees (who are also Directors of World Vision UK make themselves aware of any relevant audit information for the purposes of company law) are responsible for and to establish that the company’s auditors are aware of preparing the Financial Statements and Annual Report, that information. including the Strategic Report, in accordance with applicable The Trustees are responsible for the maintenance and law and regulations. Company law requires the Trustees to integrity of the corporate and financial information included prepare financial statements for each financial year. Under on the company’s website. company law the Trustees must not approve the financial statements unless they are satisfied that they give a true Legislation in the UK governing the preparation and and fair view of the state of affairs of the charitable dissemination of financial statements may differ from company and of the incoming resources and application of legislation in other jurisdictions. resources, including the income and expenditure, of the This confirmation is given and should be interpreted in charitable company for that period. In preparing these accordance with the provisions of s418 of the Companies financial statements the Trustees are required to: Act 2006.

• Select suitable accounting policies and then apply The Strategic Report is approved by the Trustees as them consistently Directors of World Vision UK.

• Observe the methods and principles in the Charities The Annual Report is approved by the Board on Statement of Recommended Practice (SORP) 17 February 2014 and signed on behalf of the Board • Make judgements and estimates that are reasonable of Trustees by: and prudent

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

• Prepare the financial statements on the going concern Mark Sheard basis unless it is inappropriate to presume that the Board Chair – World Vision UK company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Boys, some of them sponsored, sit on a wall in India.

World Vision 46 2013 Annual report and accounts FINANCIAL STATEMENTS

World Vision Annual report and accounts 2013 47 Statement of financial activities for the year ended 30 September 2013

Notes Restricted Unrestricted 2013 2012 £’000 £’000 £’000 £’000 Incoming resources from generated funds Voluntary income: Committed giving and other donations 2 27,386 11,511 38,897 41,881 Donations for emergencies 2 1,651 - 1,651 3,732 Donations, gifts and legacies 2 29,037 11,511 40,548 45,613 Institutional grants 3 21,917 - 21,917 21,057 Donated goods and services 4 4,196 - 4,196 2,040 Total voluntary income 55,150 11,511 66,661 68,710 Investment and other income 5 - 81 81 79 Total incoming resources 55,150 11,592 66,742 68,789

Resources expended Costs of generating funds 7 6,439 4,083 10,522 10,959 Charitable activities 6 51,239 8,207 59,446 57,192 Governance costs 7 83 371 454 513 Total resources expended 57,761 12,661 70,422 68,664

Net (outgoing) / incoming resources (2,611) (1,069) (3,680) 125 before transfers Transfers between funds 16 128 (128) - -

Net (outgoing) / incoming resources before other (2,483) (1,197) (3,680) 125 recognised gains Net unrealised investment gains / (losses) 12 - 103 103 98

Net movement in funds (2,483) (1,094) (3,577) 223

Funds at 1 October 16 9,025 9,096 18,121 17,898

Funds at 30 September 16 6,542 8,002 14,544 18,121

The results for the year derive from continuing activities and there are no gains or losses other than those shown. The statement of financial activities incorporates the income and expenditure account as required by FRS3.

World Vision 48 2013 Annual report and accounts Balance sheet FINANCIAL STATEMENTS as at 30 September 2013

2013 2012 Notes £’000 £’000 Fixed assets Tangible fixed assets 11 6,385 6,809 Investments 12 795 692 7,180 7,501

Current assets Debtors 13 7,635 8,216 Investments 12 5,455 6,206 Cash at bank and in hand - 3,257 4,309 16,347 18,731

Liabilities Creditors: Amounts falling due within one year 14 (4,749) (3,566)

Net current assets 11,598 15,165

Total assets less current liabilities 18,778 22,666

Creditors: Amounts falling due after more than one year 15 (4,234) (4,545)

Net assets 14,544 18,121

The funds of the charity Restricted funds 16 6,542 9,025 Unrestricted funds Tangible fixed assets fund 16 2,073 2,316 Strategic Initiative fund - 50 Emergency relief fund 16 - 500 General fund 16 5,929 6,230 Total funds 16 14,544 18,121

The financial statements of World Vision UK, company number 1675552, were approved by the Board on 17 February 2014 Keith Malcouronne (FCA) Mark Sheard (Board Chair) Director Director

World Vision Annual report and accounts 2013 49 Statement of cash flow for the year ended 30 September 2013 2013 2012 Notes £’000 £000 Net cash (outflow) from operating activities 17 (1,258) (3,562) Returns on investments and servicing of finance Bank interest received 52 69 Mortgage loan interest paid (55) (78)

Cash (outflow) from returns on investment and (3) (9) servicing of finance

Capital expenditure Payments to acquire tangible fixed assets (361) (201)

Cash outflow from capital expenditure (361) (201)

Management of liquid resources Reduction in bank deposit accounts 751 3,508

Cash inflow from management of liquid resources 751 3,508 Net cash (outflow) before financing (871) (264)

Financing Mortgage loan capital repayments (181) (171) Net cash (outflow) from financing (181) (171) Decrease in cash in the year (1,052) (435)

Reconciliation of net cashflow to movement in net funds (Decrease) in cash in the year (1,052) (435) Cash outflow from mortgage loan 181 171 Cash inflow from management of liquid resources (751) (3,508) Change in net funds (1,622) (3,772) Net funds at 1 October 6,022 9,794

Net funds at 30 September 4,400 6,022

World Vision 50 2013 Annual report and accounts Analysis of net funds FINANCIAL STATEMENTS for the year ended 30 September 2013

Cash Non-cash 30 1 October movement movement September 2012 in the year in the year 2013 Analysis of net funds Cash at bank and in hand 4,309 (1,052) - 3,257 Mortgage loan due within one year (181) 181 (193) (193) Mortgage loan due after more than one year (4,312) - 193 (4,119) Current asset investments 6,206 (751) - 5,455 Total 6,022 (1,622) - 4,400

World Vision Annual report and accounts 2013 51 NOTES TO THE ACCOUNTS for the year ended 30 September 2013

directly attributed to particular headings it is allocated on a basis 1 ACCOUNTING POLICIES consistent with the use of the relevant resources measured by a. Basis of preparation reference to headcount. The financial statements have been prepared under the historical Remittances to overseas programmes are accounted for when cost convention, with the exception of investments that are funds are remitted to World Vision International or donated included at market rate, and in accordance with Statement of goods and services are distributed to partner entities. Recommended Practice (SORP) Accounting and Reporting by Charities as issued in March 2005 and applicable UK accounting Cost of generating funds relates to activities that are intended to standards. generate income including servicing supporters who donate under committed giving schemes such as child sponsorship. The The charity has availed itself of paragraph 4(1) of Schedule 1 to cost of fundraising campaigns is expensed in the year in which it is the accounting regulations Companies Act 2006 and adapted the incurred although income derived from the initiatives may arise in Companies Act formats to reflect the special nature of the future years. charity’s activities.

The charity has adopted the exemption available under section 405 of the Companies Act 2006 and accordingly has not Charitable activities comprise: prepared consolidated accounts on the basis that the results of • Funding for overseas programmes which are monies expensed its subsidiary undertaking, World Vision Trading Limited, are to overseas programmes or donated goods and services not material. distributed to partner entities;

After making enquiries, the Trustees have reasonable expectation • Programmes support costs which represent the costs incurred that the charity has adequate resources to continue its activities by UK-based staff in assisting programmes overseas, including for the foreseeable future. Accordingly, they continue to adopt the their technical development, staffing, training, management and going concern basis in preparing the financial statements as financial control; and outlined in the Financial Review on page 37. • Advocacy, education and research which represents the costs incurred in the UK in educating or influencing governments, b. Incoming resources institutions and members of the public on poverty issues and All incoming resources, including income from institutional grants, includes campaigning and lobbying, public policy and research are recognised in the Statement of financial activities when the work, Christian engagement activities and educational and charity is entitled to the income, has certainty of receipt and the news publications. amount can be quantified with reasonable accuracy.

Donated goods and services, including the donated element of Governance costs represent costs that relate to the general transportation services provided to the charity at a reduced fee, running of the charity as opposed to the direct management are valued at market value and included in income when functions inherent in the activities of the charity. They provide the distributed or utilised. governance infrastructure which allows the charity to operate and Legacy income is recognised at the earlier stage of the charity to generate the information required for public accountability and approving the final estate accounts or the legacy being received. include the strategic planning processes that contribute to the future development of the charity. c. Resources expended Expenditure, other than remittances to overseas programmes, is accounted for on an accruals basis and is classified over the activity headings shown opposite. Where expenditure cannot be

World Vision 52 2013 Annual report and accounts NOTES TOACCOUNTS THE

d. Foreign exchange • The Strategic initiative fund represents funds set aside to finance strategic and innovation initiatives related to delivering Transactions denominated in foreign currency are translated into our 2011/15 strategy. sterling and recorded at the exchange rates ruling at the date of the transactions or, if hedged, at the forward contract rate. • The General fund comprises accumulated surpluses less Monetary assets and liabilities denominated in a foreign currency deficits after transfers to designated funds. It allows the charity are translated into sterling at the exchange rates at the balance to budget for anticipated commitments in the short and sheet date. Translation differences are dealt with in the Statement medium term and to provide adequate working capital. of financial activities.

h. Pensions e. Tangible fixed assets and depreciation The company operates a defined contribution pension scheme. Depreciation is provided on all tangible fixed assets at rates Contributions are charged to the Statement of financial activities calculated to write off the cost less estimated residual value of as they become payable in accordance with the rules of the each asset evenly over its estimated useful life as follows: scheme.

Freehold land nil I. Leasing commitments Building 50 years Equipment, including computers 3 or 5 years Rentals paid under operating leases are charged to income as Other fixed assets, including software 3 to 10 years incurred.

f. Investments j. Irrecoverable Value Added Taxation Investments are valued at mid-market value at the balance sheet The company is unable to recover the majority of Value Added date with the exception of shares which are subject to trading Taxation charged on its purchases which is included in the related restrictions which are stated at Trustees’ valuation. expense or asset in the accounts. g. Funds Restricted funds are subject to conditions imposed by donors or implied by the nature of the appeal.

Designated funds are amounts which have been put aside at the discretion of the Trustees as follows:

• The Tangible fixed assets fundrepresents the net book value of fixed assets less related borrowings, and therefore is not available for distribution.

• The Emergency relief fund represents funds set aside to ensure an immediate response in humanitarian emergencies.

World Vision Annual report and accounts 2013 53 2 Donations, gifts and legacies

At 30 September 2013 the number of children in the Child Sponsorship committed giving scheme was approximately 101,413 (2012: 108,826), a decrease of 6.8%.

Restricted Unrestricted 2013 2012 £’000 £’000 £’000 £’000 Committed giving and other donations

Child Sponsorship committed giving scheme 24,782 - 24,782 25,900 Legacies 173 606 779 820 Other donations 2,431 4,516 6,947 8,398 Tax recovered under Gift Aid - 6,389 6,389 6,763 27,386 11,511 38,897 41,881 Donations for emergencies Emergency appeals 751 - 751 722 Disasters Emergency Committee (DEC) appeals 900 - 900 3,010 1,651 - 1,651 3,732

29,037 11,511 40,548 45,613

World Vision 54 2013 Annual report and accounts 3 Institutional grants FINANCIAL STATEMENTS

2013 2012 £’000 £’000 Development grants 21,226 18,048 Relief grants 691 3,009 21,917 21,057

Grants receivable from: DFID Programme Partnership Arrangement (PPA) 3,939 3,938 Bulawayo Emergency Water Augmentation (DFID) 2,000 Girls Education Challenge (DFID) 1,320 444 Microfinance Project (DFID) 601 Hunger Safety Net Programme (DFID) 330 119 Temotu Tsunami Response (DFID) 165 DFID - UK Aid match funding for West Africa Appeal 367 Department for International Development (DFID) 889 2783 European Community Humanitarian Office (ECHO) 1,670 1,172 Other European Union 1,749 2,840 The Global Fund to Fight AIDS, Tuberculosis and Malaria 5,968 6,017 United Nations 2,437 2,575 States of Jersey 296 100 World Food Programme 85 610 Danish International Development Agency (DANIDA) - 38 States of Guernsey - 39 World Bank and other 468 15 21,917 21,057

Included in institutional grants is £1,938,888 (2012: £1,752,790) received as a contribution towards UK programme support and administration costs. 4 Donated goods and services

2013 2012 £’000 £’000 Donated goods and services received from: World Food Programme 2,646 2,040 Food and Agricultural Organisation 1,550 - 4,196 2,040

World Vision Annual report and accounts 2013 55 5 Investment and other income

2013 2012

£’000 £’000 Bank interest 52 69 Other income 29 10 81 79 Other income relates to administration fees and donations for use of our building.

6 Charitable activities Funding for overseas programmes Direct expenditure on remittances to overseas programmes is Allocated expenditure in remittances to overseas programmes made through World Vision International to World Vision partner relates to programme costs incurred in the United Kingdom. entities for development, relief and advocacy in the regions listed. World Vision hedges a percentage of any remittances to overseas programmes made in US Dollars in advance - see note 18 World Vision UK’s share of the programme costs of World Vision regarding Derivatives not included at fair value. International which are not country specific are apportioned to the regions in proportion to the share of World Vision UK’s remittances which each region receives. Restricted Unrestricted 2013 2012 £’000 £’000 £’000 £’000 Support was given to the following regions (including donated goods and services) East Africa 16,993 2,259 19,252 22,614 Southern Africa 13,329 1,054 14,383 7,821 West Africa 6,087 131 6,218 5,365 Asia 8,876 542 9,418 7,305 Latin America 1,927 2 1,929 4,245 Middle East/Eastern Europe 2,586 273 2,859 4,106 Total remittances to overseas programmes 49,798 4,261 54,059 51,456

Programme support costs 354 1,604 1,958 2,233 Advocacy, education and research 1,087 2,342 3,429 3,503 51,239 8,207 59,446 57,192 Number of countries supported 34 34

Direct Allocated expenditure expenditure

Funding for overseas programmes 54,059 - 54,059 51,456 Programme support costs 1,150 808 1,958 2,233 Advocacy, education and research 2,295 1,134 3,429 3,503 57,504 1,942 59,446 57,192

World Vision 56 2013 Annual report and accounts 7 Costs incurred in the United Kingdom FINANCIAL STATEMENTS

Costs of Charitable generating Governance activities funds costs 2013 2012 Basis of £’000 £’000 £’000 £’000 £’000 allocation Salaries 4,057 3,167 288 7,512 8,160 Headcount Employment benefits 167 148 25 340 359 Headcount Temporary staff 63 38 5 106 200 Headcount Training 45 23 4 72 128 Headcount Recruitment 74 56 8 138 147 Headcount Travel and subsistence 353 195 22 570 633 Headcount Advertising 73 727 - 800 577 Direct Research and consultancy 321 282 5 608 816 Direct Other marketing and communications 759 4,757 18 5,534 5,547 Direct Equipment maintenance and rental 231 235 7 473 505 Headcount Depreciation 163 620 2 785 783 Headcount Occupancy and supplies 420 175 8 603 469 Headcount Legal and professional 13 14 62 89 79 Direct Bank charges 2 61 - 63 66 Direct Mortgage interest 31 24 - 55 78 Headcount 6,772 10,522 454 17,748 18,547 Included in the total are 1,942 2,265 347 4,554 5,242 total allocated costs of:

2013 2012 £000 £000 Governance costs are made up as follows: Board including Trustee 35 41 expenses (see also note 10) Audit 50 48 Strategic management 369 424 454 513

World Vision Annual report and accounts 2013 57 8 Net incoming / (outgoing) resources for the year

2013 2012 £’000 £’000 This is stated after charging Depreciation of owned assets 785 783 Operating lease rentals – plant and machinery 67 60 Operating lease rentals – buildings 178 70 Interest payable on mortgage loans 55 78 Auditor’s remuneration – audit fees 39 39 – other 3 3

As at 30 September 2013, the charity had annual commitments under non-cancellable operating leases for plant and material which expire: Within 1 year - - In 2-5 years 67 58 As at 30 September 2013, the charity had annual commitments under non-cancellable operating leases for buildings which expire: Within 1 year - - In 2-5 years 178 131

Auditor’s remunerations has been restated to exclude unrecoverable VAT and disbursements. This now shows only the fee receivable by the auditors.

9 Staff costs

2013 2012 £’000 £’000 Aggregate payroll costs were as follows: Wages and salaries 6,310 6838 Social security costs 639 717 Other pension costs 563 605 7,512 8,160

World Vision 58 2013 Annual report and accounts 9 Staff costs FINANCIAL STATEMENTS

2013 2012

Number Number

The number of employees whose actual emoluments (including benefits-in-kind but excluding pension contributions) fell in the following bands is:

£60,001 - £70,000 1 - £70,001 - £80,000 1 3 £80,001 - £90,000 2 - £90,001 - £100,000 1 1 The emoluments of the Chief Executive, the highest paid employee, were £99,981(2012: £95,988) Contributions of £39,147 (2012: £31,321) have been paid into the pension scheme on behalf of the above employees.

2012 has been restated to show actual rather than annualised emoluments.

The divisional breakdown of average monthly permanent staff numbers is:

Policy and Programmes 68 70 Public Engagement 74 82 Organisational Effectiveness 38 43 Chief Executive’s Office 2 3 Finance and Risk 24 23 206 221

In order to handle peak workloads and cover the shortage of permanent staff, temporary staff equivalent to 5.6 full-time staff (2012: 9.0) were used.

10 Trustees’ remuneration

The Trustees received no remuneration for their services. Expenses principally relate to travel in the UK and to Directly incurred expenses are reimbursed, if claimed, and overseas programmes. in 2013 totalled £4,958 (2012:£5,536), which was claimed Indemnity insurance is provided for the Trustees and by nine Trustees (2012: 10 trustees). Principal Officers of the charity. Premiums paid totalled £7,092 (2012:£9,179).

World Vision Annual report and accounts 2013 59 11 Tangible fixed assets

The cost of freehold land amounting to £670,000 (2012: £670,000) is not depreciated.

Freehold Computer Assets in Fixing land and and office course of and building equipment development fittings Total £’000 £’000 £’000 £000 £’000 Cost: At 1 October 2012 7,050 4,312 - 450 11,812 Transfer of assets - - 12 (12) - Additions 34 316 11 361 Disposals - (113) - (27) (140) At 30 September 2013 7,050 4,233 328 422 12,033 Depreciation: At 1 October 2012 1,141 3,629 - 233 5,003 Transfer of assets - - - - - Charge for the year 128 617 - 40 785 Disposals - (113) (27) (140) At 30 September 2013 1,269 4,133 - 246 5,648

Net book value: At 30 September 2013 5,781 100 328 176 6,385

At 1 October 2012 5,909 683 - 217 6,809

World Vision 60 2013 Annual report and accounts 12 Investments FINANCIAL STATEMENTS

All fixed asset investments are held within the UK. The charity continues to hold the entire issued share capital Current asset investments comprise of deposit accounts of of two £1 shares in World Vision Trading Limited, which is £5.4m held on short term deposit over the year end not currently trading. This has been excluded from period and will revert to liquid cash within 30 days of year consolidation on the grounds of immateriality. There are no end (2012: £6.2m reverting to liquid cash within 30 days of further interests in subsidiaries, so group accounts have not 2012 year end). been prepared. Accordingly these accounts present information about the charity and not its group.

2013 2012 £’000 £’000 Fixed assets Common investment funds held by the charity Market value at 1 October 692 594 Acquisition of donated shares - 633 Disposal of donated shares - (633) Net investment gains / (losses) 103 98 Market value at 30 September 795 692 Historical cost at 30 September 452 452

2013 2012 £’000 £’000 Current assets

Deposit accounts 5,455 6,206 5,455 6,206

13 Debtors

2013 2012 £’000 £’000 Institutional grants receivable 5,302 5,788 Amounts owed by other World Vision entities - 268 Tax recoverable 1,758 1,265 Prepayments and accrued income (including legacy income) 562 860 Other debtors 13 35 7,635 8,216

World Vision Annual report and accounts 2013 61 14 Creditors Amounts falling due within one year

2013 2012 £’000 £’000 Mortgage loan (see also note 15) 193 181 Taxation and social security 170 203 Other creditors 3,735 2,599 Amounts owed to other World Vision entities 85 - Accruals and deferred income 566 583 4,749 3,566

15 Creditors Amounts falling due after more than one year The mortgage loan is secured on the charity’s property and Interest is charged at LIBOR (London Interbank is repayable over 25 years from October 2003. Offered Rate) plus MLA (Mandatory Liquid Assets) cost plus 0.7 percent.

2013 2012 £’000 £’000 VAT repayable between 1-5 years 115 233 Mortgage loan repayable between 1-5 years 878 788 Mortgage loan repayable in more than 5 years 3,241 3,524 4,234 4,545

World Vision 62 2013 Annual report and accounts 16 Funds FINANCIAL STATEMENTS The Emergency relief fund is used to finance emergency the related loan. The transfer between restricted funds and responses for which there is no specific income source and is general funds represents repayment of previous pre-funding of replenished when appropriate funds are received. The transfer restricted funds from unrestricted reserves in the General fund, or between the General fund and the Strategic initiative fund transfers between funds restricted by purpose rather than region. represents the completion of the initial initiatives related to delivering the five-year strategy started in 2011. Any future The General fund at 30 September 2013 includes cumulative net initiatives for this delivery will be funded from the General fund. unrealised gains on investments of £342,000 (2012: unrealised The transfer between the General fund and the Tangible fixed gain of £240,000) – see note 12. assets fund represents net movements on fixed assets and Unrestricted funds

Tangible fixed Emergency Strategic Restricted assets relief initiative General funds fund fund fund fund Total £’000 £’000 £’000 £’000 £’000 £’000

Balance at 1 October 2012 9,025 2,316 500 50 6,230 18,121 Incoming resources 55,150 - 126 - 11,466 66,742 Outgoing resources (57,761) - (126) - (12,535) (70,422) Transfers between funds 128 (243) (500) (50) 665 - Net unrealised investment gain 103 103 Balance at 30 September 2013 6,542 2,073 - - 5,929 14,544

Represented by: Tangible fixed assets - 6,385 - - - 6,385 Investments 500 - - - 5,750 6,250 Debtors 5,451 - - - 2,184 7,635 Cash at bank and in hand 591 - - - 2,666 3,257 Creditors: amounts falling due (193) - - (4,556) (4,749) within one year Creditors: amounts falling due (4,119) - - (115) (4,234) after more than one year Balance at 30 September 2013 6,542 2,073 - - 5,929 14,544

Transfers Balance Incoming Outgoing between Balance 2012 resources resources funds 2013 £’000 £’000 £’000 £’000 £’000 East Africa 2,222 16,075 (17,014) (153) 1,130 Southern Africa 1,258 13,799 (13,363) (406) 1,288 West Africa 1,377 6,084 (6,803) (98) 560 Asia 2,070 8,911 (9,946) (59) 976 Latin America 213 2,078 (2,313) 204 182 Middle East/Eastern Europe 219 3,052 (2,944) 100 427 Cross Regional Initiatives 1,666 5,151 (5,378) 540 1,979 Total 9,025 55,150 (57,761) 128 6,542

World Vision Annual report and accounts 2013 63 17 Reconciliation of net (outgoing) / incoming resources to net cash inflow from operating activities

2013 2012 £’000 £’000 Net incoming / (outgoing) resources for the year (3,680) 125 Depreciation of tangible fixed assets 785 783 Loss on disposal of fixed assets - 8 Increase / (decrease) in operating debtors 581 (3,884) Increase / (decrease) in operating creditors and accruals 1,053 (603) Bank interest received (52) (69) Mortgage loan interest paid 55 78 Net cash (outflow) / inflow from operating activities (1,258) (3,562)

18 Derivatives not included at fair value World Vision International places foreign exchange forward At 30 September 2013, World Vision International had US$88m contracts on behalf of World Vision UK to manage World Vision of foreign currency forward contracts placed on behalf of UK’s exposure to foreign currency exchange risks. World Vision UK. The unrealised loss on these derivatives as at 30 September 2013 was £2.8m (30 September 2012: US$54m The fair value of these instruments is calculated at the balance foreign currency forward contracts with an unrealised loss sheet date by comparison between the rate implicit in the of £0.6m). contract and the exchange rate at that date.

19 Commitments and contingent liabilities Pension commitments The company operates a defined contribution scheme for its for which the company has no responsibility other than regular employees.The assets of the scheme are held separately from contributions on behalf of employees.There were no those of the company in a group personal pension scheme, contributions outstanding at either year end.

20 Taxation As a registered charity the company is exempt from taxation on its income and gains to the extent that they are applied for its charitable purposes.

World Vision 64 2013 Annual report and accounts In addition, we read all the financial and non-financial information FINANCIAL STATEMENTS Independent in the Strategic Report and the Trustees’ Annual Report to identify material inconsistencies with the audited financial statements and auditor’s report to identify any information that is apparently materially incorrect to the Members of World Vision UK based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware We have audited the financial statements of World Vision UK of any apparent material misstatements or inconsistencies we for the year ended 30 September 2013 which comprise the consider the implications for our report. Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes numbered 1 to 20. Opinion on financial statements In our opinion the financial statements: The financial reporting framework that has been applied in • give a true and fair view of the state of the charitable their preparation is applicable law and United Kingdom company’s affairs as at 30 September 2013 and of its incoming Accounting Standards (United Kingdom Generally Accepted resources and application of resources, including its income and Accounting Practice). expenditure, for the year then ended; • have been properly prepared in accordance with United This report is made solely to the charitable company’s members, Kingdom Generally Accepted Accounting Practice; and as a body, in accordance with Chapter 3 of Part 16 of the • have been prepared in accordance with the requirements of Companies Act 2006. Our audit work has been undertaken so the Companies Act 2006. that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report Opinion on other matter prescribed by the and for no other purpose. To the fullest extent permitted by law, Companies Act 2006 we do not accept or assume responsibility to anyone other In our opinion the information given in the Strategic Report and than the charitable company and the company’s members as a the Trustees Annual Report for the financial year for which the body, for our audit work, for this report, or for the opinions we financial statements are prepared is consistent with the financial have formed. statements.

Respective responsibilities of Trustees and Auditor Matters on which we are required to report by exception As explained more fully in the Statement of Trustees’ We have nothing to report in respect of the following matters Responsibilities, the Trustees (who are also the Directors of where the Companies Act 2006 requires us to report to you if, in the charitable company for the purpose of company law) are our opinion: responsible for the preparation of the financial statements and for • adequate accounting records have not been kept; or being satisfied that they give a true and fair view. • the financial statements are not in agreement with the accounting records and returns; or Our responsibility is to audit and express an opinion on the • certain disclosures of trustees’ remuneration specified by law financial statements in accordance with applicable law and are not made; or International Standards on Auditing (UK and Ireland). Those • we have not received all the information and explanations we standards require us to comply with the Auditing Practices Board’s require for our audit. Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable Naziar Hashemi assurance that the financial statements are free from material Senior Statutory Auditor misstatement, whether caused by fraud or error. This includes an For and on behalf of assessment of: whether the accounting policies are appropriate Crowe Clark Whitehill LLP to the charitable company’s circumstances and have been Statutory Auditor consistently applied and adequately disclosed; the reasonableness London of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. 20 February 2014

World Vision Annual report and accounts 2013 65 BIOGRAPHIES OF TRUSTEES Linda Emery Linda Emery is the Director of Group Resourcing Projects and policy for BP. She works with HR teams globally to ensure BP is Chair – Mark Sheard attracting and developing talent.

Mark Sheard has enjoyed a successful career in advertising and Her career has included senior HR roles such as Diversity and marketing, creating one of the UK’s most successful marketing Inclusion Director and Talent Director with both BP and Unilever communications businesses before merging it into a multinational and Linda has provided Human Resources consultancy to Save group in 2000. He has worked on fundraising strategies with a the Children. Linda joined the Board of World Vision UK in number of leading voluntary sector organisations. February 2011.

In 2001 Mark founded the Whatnext? Consultancy to provide Linda serves as Chair of the Organisational Effectiveness and marketing and corporate development advice to commercial and Remuneration Committee and is a member of the Board ethical organisations. Mark currently chairs the Board of Uganda Development Committee. Development Services, a Christian charity promoting development in rural communities in East Africa. Richard Izard He joined the Board of World Vision in January 2007 and was Richard Izard is Chief Executive of Organic Leadership, a niche appointed Chair of the Board in February 2011. Mark is a leadership development and executive coaching consultancy, and member of the Finance Audit and Risk Committee, Public he has a passion for individual, team and organisational Engagement Committee and Board Development Committee. transformation.

Jennifer Collins Previously Richard has been Managing Director of a retail business and held board positions in sales, marketing, commercial and Jennifer Collins has held a variety of leadership and management finance. His commercial experience spans sectors including roles in the charitable and public health sectors and in banking, retail, music, film, fast moving consumer goods (FMCG) development consultancy in Asia and Africa. Currently, Jennifer is and engineering, and he is also a qualified accountant. working as a Consultant for a number of development organisations and companies. Richard joined the Board of World Vision UK in May 2011 and is a member of the Public Engagement Committee and Policy and Previous roles include Executive Director of Serve Afghanistan, Programmes Committee. the United Mission to Nepal (both international Christian development organisations), International Director at Tearfund UK Kevin Jenkins and Director of Therapy Services at Royal Free Hospital, London. Jennifer also acts as Trustee for a number of organisations, Kevin Jenkins became President and Chief Executive Officer of including the International Nepal Fellowship (International). World Vision International in October 2009, following a successful career in airline, technology and investment businesses. Travelling Jennifer joined the Board of World Vision UK in February 2011 extensively as World Vision International President, Kevin spends and is a member of the Policy and Programmes Committee. time in communities with children, families and staff in many of the countries where World Vision works. Valerie Dias Based at World Vision International’s Global Centre Executive Valerie Dias is presently Executive Vice President and Chief Risk Office in Uxbridge, UK, Kevin is a member of a number of global and Compliance Officer for Visa Europe with responsibility for organisations that pursue practical, sustainable health corporate risk compliance and a variety of corporate services. She improvements for the world’s most vulnerable women and previously held the role of Chief Financial Officer for Visa Europe. children, the increased effectiveness of civil society and excellence She is a Fellow of the Chartered Institute of Certified in government. Accountants.

Valerie joined the Board of World Vision UK in April 2007 and is a Warren Lancaster member of the Finance Audit and Risk Committee and the Warren Lancaster is the International Director and Sector Organisational Effectiveness and Remuneration Committee. Specialist for Disaster and Conflict Recovery for Geneva Global, one of the world’s leading providers of philanthropic advisory

World Vision 66 2013 Annual report and accounts services. Warren was previously the Director of the Leprosy including Head of Corporate Banking Public Affairs at RBS and OF TRUSTEES BIOGRAPHIES Mission for England and Chief Executive of international health Public Affairs Policy Adviser at the London Stock Exchange Plc. charity, Merlin. He was involved in the establishing and Prior to this, Mark was a parliamentary adviser to William Hague development of Medair, the Swiss humanitarian agency and held a MP and Head of the Political Section at Conservative Central number of senior positions there. Warren’s commercial Office. He has a background in International development policy background is in risk management within the insurance industry. having been an adviser to the Shadow Secretary of State for Warren joined the Board of World Vision UK in February 2011. International Development between 1999-2001. He retired from the Board in May 2013. Mark joined the Board of World Vision UK in February 2012 and is a member of the Public Engagement Committee. Anna Laszlo

Anna Laszlo has extensive experience of international Stephen Phelps development from her previous career with the UK government’s Stephen Phelps is a Chartered Accountant and worked for 21 Department for International Development. years with KPMG, including 10 years as an Audit Partner in their Roles with the Department included: Deputy Director (Strategy), Hong Kong office with responsibility for auditing a range of South Asia Division; Head of the joint FCO/DFID Sudan Unit; multinational and national companies. Principal Private Secretary to the Secretary of State for Steve has acted as Trustee for a number of charities. He joined International Development and Head of Office in Mozambique. the Board of World Vision UK in 2002 serving as Chair of the She now works as an independent coach and facilitator. Board from 2007 to 2011 and is a member of the Board Anna joined the Board of World Vision UK in May 2008. Anna is Development Committee. Vice Chair of the Board, Chair of the Board Development Steve is also a member of the Board of World Vision International, Committee and a member of both the Organisational including its Executive Committee, and chaired its Audit and Risk Effectiveness and Remuneration Committee and the Policy and Management Committee up to November 2013, and has chaired Programmes Committee. its Stewardship Committee since then.

Keith Malcouronne Andy Reed Keith Malcouronne is Managing Partner of Financial Professional & Andy Reed is the Director of Sajelmpact Limited, a Christian Strategy Services LLP, a Christian-led Chartered Accountancy and writer and speaker, a Council member of the Evangelical Alliance business consulting group with teams in the UK and India. and a former MP for Loughborough. He has a special interest in Keith is a non-executive director on the Boards of other sports policy, international development and wellbeing issues. businesses including BC technologies LLP and The Specialist Andy joined the Board of World Vision UK in February 2012 and Washing Company Limited. Keith also serves on the Boards of a is a member of the Policy and Programmes Committee. number of charities including the Oxford Centre for Mission Studies, Guildford Diocesan Board of Finance (Vice Chair) and the Audit Committee of the Church of England Archbishops’ Council Julian Thomas (Vice Chair). Julian Thomas is a director of Oxford Strategic Marketing, a Keith joined the Board of World Vision UK in April 2007 and consultancy specialising in marketing strategy and capability serves as Chair of the Finance Audit and Risk Committee and is a development for global multinationals and social marketing in the member of the Organisational Effectiveness and Remuneration public sector. Committee. He has worked as a consultant across a large number of Mark Parsons industries, in particular healthcare and pharmaceuticals. Previously he worked in marketing for Procter & Gamble. Mark Parsons is Head of Regional Engagement for Business and Commercial Banking at NatWest and the Royal Bank of Scotland Julian joined the Board of World Vision UK in May 2011 and (RBS) Group. Mark has held a number of public affairs roles serves as Chair of the Public Engagement Committee. He is also a member of the Finance, Audit and Risk Committee.

World Vision Annual report and accounts 2013 67 TRUSTEES, PRINCIPAL OFFICERS AND ADVISERS

Board of Trustees Auditors Jennifer Collins Crowe Clark Whitehill LLP Valerie Dias St Bride’s House Linda Emery 10 Salisbury Square Richard Izard London EC4Y 8EH Kevin Jenkins Warren Lancaster (to May 2013) Bankers Anna Laszlo, Vice Chair Lloyds TSB Bank Plc Keith Malcouronne 28 Secklow Gate West Mark Parsons Milton Keynes MK9 3EH Stephen Phelps Allied Irish Bank Andy Reed Byron House Mark Sheard, Board Chair Maid Marian Way Julian Thomas Nottingham NG1 6HS

Secretary Registered Office Tim Pilkington Opal Drive, Fox Milne Milton Keynes MK15 0ZR Principal Officers Chief Executive Justin Byworth

Policy and Programmes Director David Thomson

Public Engagement Director Mathew Neville

Organisational Effectiveness Director Adrian Blair

Finance and Risk Director Tim Pilkington (appointed 02 January 2013)

Acting Chief Financial Officer Jonathan Bailey (until 01 January 2013)

World Vision 68 2013 Annual report and accounts THANK YOU BIBLIOGRAPHY

With special thanks to all of the supporters listed below: 1. Figure sourced from UNICEF at http://www.childinfo.org/ individuals; families; charitable trusts; companies; and files/Child_Mortality_Report_2013.pdf institutions who have invested significantly in the work of World Vision this year – plus those who wish to remain 2. Figure sourced from The Lancet at http://www.thelancet. anonymous. We really value your partnership as we serve com/journals/lancet/article/PIIS0140-6736(13)60937-X/ the world’s most vulnerable children. abstract

Mr Tudor Brown MBE and Mrs Nicola Brown 3. Figures sourced from the World Food Programme at Mr and Mrs Jonathan and Nicola Cormack http://www.wfp.org/hunger/stats Danish International Development Agency DFID 4. Figures sourced from UNFPA’s Marrying Too Young: Mr and Mrs Mark and Sarah Driver End Child Marriage at http://unfpa.org/endchildmarriage Mr and Mrs James and Katherine Anne Duffy ECHO European Union Global Fund to Fight AIDS, Tuberculosis and Malaria Mr David Henderson OBE State of Jersey State of Guernsey Mr and Mrs Peter and Lillian Hindley Hotel Puente Romano (Marbella) The Jerusalem Trust Mr and Mrs Kevin and Helen Jenkins Mr Julian Kay The Latin American Children’s Trust Macquarie Group Foundation The Madeline Mabey Trust The Moonpig Foundation Out of Eden Mr Don Procter Mr John Schneider The Shanley Charitable Trust Mrs Joyce Skipp The Tisbury Telegraph Trust Ms Andrea White World Food Programme And thank you to all of our supporters this year.

World Vision Annual report and accounts 2013 69 book an Ambassador to speak to your local social groups GET INVOLVED about World Vision’s work, visit: There are many ways you can support www.worldvision.org.uk/get-involved/become-ambassador our mission to transform the lives of the Email: [email protected] world’s poorest children. JOIN OUR CAMPAIGNS Campaigning with us can be as simple as signing one of our SPONSOR A CHILD online petitions, or if you have more time writing a letter or Through child sponsorship you can form a real relationship coming to an event. with an individual child in one of the world’s hardest places, www.worldvision.org.uk/get-involved/campaign-change while supporting projects that benefit all the children in their community. These projects are often about helping communities to secure the essentials we take for granted FOLLOW US – like food, clean water, basic healthcare and education – Stay in touch and find out what you can do to help. and helping to create an environment in which the most vulnerable children are protected and can live free from fear. Follow us on Twitter: @WorldVisionUK By changing the world children live in, we can make a lasting difference. Join our growing Facebook group for up-to-date videos, audio and blogs from the field As a sponsor, we’ll keep you up to date on how your sponsored child and the vital projects in their community LEAVE A GIFT IN YOUR WILL are progressing. You’ll have the chance to write to or email your sponsored child and send cards on birthdays and at Writing a will is much more than a financial statement. It’s Christmas. You can even visit them to see the positive how we safeguard the future of our family and friends after impact your sponsorship is making at first hand. we are no longer here. It’s how we show what is important To sponsor a child today: Tel: 0800 50 10 10 to us, how we want the world to be. By remembering Visit: www.worldvision.org.uk/child-sponsorship World Vision in your will, you can help us fund essential projects giving children the opportunity to experience life Give Raw Hope in all its fullness. Any gift, large or small, will help to ensure that children are cared for and protected. Raw Hope is an initiative with the sole aim of saving and To find out more and request a free legacy brochure: protecting children in the world’s most dangerous places; Tel: 01908 84 10 60 children who are beyond the reach of child sponsorship. A Email: [email protected] pledge of £10 a month will give these children an increased chance of survival, and offer hope for their protection. PRAY WITH US To sign up to Raw Hope: www.worldvision.org.uk/raw-hope We really value your prayers for our work across the world. As a Christian organisation we believe it is important Become an Ambassador for the goodness and grace of God to permeate all we do. We believe God will use your prayers to bring life in all its You could become an Ambassador and share with others fullness to all who we work with. View the prayer requests your first-hand experience of sponsoring a child. If you want we have received from the communities you support at: to know more about the Ambassador role or would like to www.worldvision.org.uk/get-involved/prayers

World Vision 70 2013 Annual report and accounts This page: Naina, 4, a sponsored child in India practises her spelling. Back cover: Isaac, 6, a World Vision sponsored child collecting water at a community water tank. ©2013 Simon Peter Esaku/World Vision ©2013 Annila Harris/World Vision Harris/World Annila ©2013 “I have come that they may have life and have it to the full” John 10:10

World Vision UK World Vision House, Opal Drive, Fox Milne, Milton Keynes, MK15 0ZR tel: +44 (0) 1908 84 10 00 fax: +44 (0) 1908 84 10 01 email: [email protected] www.worldvision.org.uk

World Vision is a registered charity no. 285908, a company limited by guarantee and registered in England no.1675552. Registered office as above.